What is RSI? How to identify the buying zone?

[Balaji]

RSI: The relative strength index (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an stock.

It exceptionally works in the sideways movement / non-trending area.

Guidelines:

1. The RSI time period is normally 14 days. The RSI is measured on a scale from 0 to 100, with high and low levels marked at 70 and 30, respectively.
2. If RSI is more than 70, it indicates “over bought zone”
3. If RSI is less than 30, it indicates “over sold zone”  and its time to buy now. The over sold territory can be identified as a buying zone.

[subbu]

Relative strength indicator is a technical indicator to determine whether the stock is overbought or oversold.Buying zone is when RSI crosses 30 mark in uptrend.

[Sakunthala]

Relative strength index in the technical indicators, helps to identify overbought and oversold stokc.It works in non-trending zone or sideways.

If the RSI is more than 70 then it is over bought zone and it crossed less than 30 it indicates weakness and can buy now.

[Sangeetha Subramaniam]

Relative strength index indicator is based on the number of positive and negative candlestick bars and this works well with non trending zone.

 

When the RSI is applied on the non trending zone, it provides the index with the mark of 70 and 30 scale. When the index moves below 30, it indicates the aggressive selling pressure and when it crosses 30 again and moves above, it indicates the bullish trend and the long position can be created to buy.

[Padmavathi Sukumar]

RSI is Relative Strength Index, a technical indicator used to understand price movement in non trending zone. The RSI is marked for a period with 70 and 30 mark zones. If price goes below 30 mark it is time to buy

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