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  • Relative Strength Index

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    mydev testing
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    RSI, or Relative Strength Index, is an oscillator that is plotted along with the daily bar chart and provides an additional dimension for chart interpretation. It indicates whether the price is overbought or oversold based on momentum. Traders use RSI with support and resistance levels, where readings over 70 indicate an overbought asset and readings below 30 indicate an oversold asset. The 50 level can help determine if there is upward or downward momentum. It is best to consider price action when looking to trade based on RSI signals. Using RSI with a moving average or looking for divergences can also provide good trading signals in trending markets.

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    RSI

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    RSI, or Relative Strength Index, is an oscillator that is plotted along with the daily bar chart and provides an additional dimension for chart interpretation. It indicates whether the price is overbought or oversold based on momentum. Traders use RSI with support and resistance levels, where readings over 70 indicate an overbought asset and readings below 30 indicate an oversold asset. The 50 level can help determine if there is upward or downward momentum. It is best to consider price action when looking to trade based on RSI signals. Using RSI with a moving average or looking for divergences can also provide good trading signals in trending markets.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    14 views7 pages

    Relative Strength Index

    Uploaded by

    mydev testing
    RSI, or Relative Strength Index, is an oscillator that is plotted along with the daily bar chart and provides an additional dimension for chart interpretation. It indicates whether the price is overbought or oversold based on momentum. Traders use RSI with support and resistance levels, where readings over 70 indicate an overbought asset and readings below 30 indicate an oversold asset. The 50 level can help determine if there is upward or downward momentum. It is best to consider price action when looking to trade based on RSI signals. Using RSI with a moving average or looking for divergences can also provide good trading signals in trending markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 7

    RELATIVE STRENGTH

    INDEX RSI
    What is RSI ?

     Tool that adds new dimension to chart interpretation


     Plotted along with Daily Bar chart
     Oscillator for
     Equation:
    RSI – What does this indicate?

    Entries/
    Trend OB/ OS
    Exits
    Use OB/OS with Support & Resistance levels

    70-OB

    30-OS
    Top 10 RSI
    Strategies 50 – Range to Decide Upward(> 50) or downward momentum( <
    50)

    Always consider price action when considering Trade

    RSI + MV is a good signal in Trending Market


    How to Apply

     From Indicators – Select RSI


     Set RSI Length to 14
     Source “CLOSE”
    Use with Moving
    Average
    Divergence
    REGULAR DIVERGENCE SHOWS REVERSAL POINTS

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