Archive for RSI
Technical Analysis, how much do you use it?
Posted by: | CommentsDear Reader
I am currenty writing a book and recording the multimedia Trader Academy Pro Training course, which will be absolutely unique. However while I am tuning the content I have a question for you ! Technical Analysis, how much of it do you actually find useful or use?
There are so many theories and tool sets out there!
- Japanese Candlesticks
- Bollinger Bands
- Envelope Channels
- Moving Averages, MACD, RSI, Stochastics
- Momentum, Rate of Change (ROC)
- Sentiment Indicators (Market Vane for example)
- Dow Theory
5. Relative Strength Index, how strong is your trend ? Learn Stock Trading
Posted by: | CommentsHere we have a very popular indicator called Relative Strength Index, or Wilders RSI. Developed by J Welles Wilder, this indicator measures the strength of any stock by using its average net up closing day prices, by its average net down closing process, for the period set.
RSI fluctuates between O and 100, 0= Oversold, and 100 being overbought. It is a leading indicator and can be used to predict future trend changes using positive or negative divergences compared to price.
Divergences are one of the most powerful ways to use most indicators. The fact that it is a leading indicator, as opposed to Moving Averages which are lagging, and can thus indicate future directional changes. Read More→
