Thursday, May 20, 2021

How to use RSI Indicator?

Relative Strength Indicator (RSI) is a momentum indicator.

The RSI fluctuates between 0 and 100%. The RSI is considered  70%  then it is overbought price and  when below 30% then it is oversold price. 



In above picture, i add the RSI indicator, in this we know that when to buy and sell. If Rsi value is cross above 60 then we want to buy and if rsi value goes below 30 then we want to buy.

The standard calculation for RSI uses 14 trading days as the basis, which can be adjusted to meet the needs of the user. 

If the trading period is adjusted to use fewer days, the RSI will be more volatile and will be used for shorter term traders. 


HAPPY TRADING & HAPPY INVESTING

at No comments:
Subscribe to: Posts (Atom)

How to Draw Demand and Supply Zone

Supply and Demand Zones are chart areas with concentrated buying or selling interest. Buyers Create Demand zones, while Sellers create Suppl...

  • Flow charts of Rising Returns
    Derivatives is too risky. In my point of view Don't do Derivatives Trading. Derivatives means Futures, Options, Forwards and swaps.  In ...
  • Trader Pyramid
      If you know nothing, then you are Gambler If you know one thing so you are Dabbler If you know two things, then you are Survivor and  If ...
  • Derivatives (Futures and Options) Trading
    Futures and Options (F&O) These are the contracts signed by two parties in the share market. Futures   A future is a right to obli...