RSI – Basics

[vc_row][vc_column][boc_spacing height=”10px”][vc_column_text]In the last section we looked at Moving Average crosses and using Moving Averages to determine the trend. In this section we will move on to a new type of indicator – the Oscillator. Unlike the MA, Oscillators tend to appear below your chart in a separate window. We’re going to take a look at one of the most common oscillators, the Relative Strength Index or RSI:

RSI looks at an instrument’s ability to close higher/lower over a given period. When RSI is above 70, is considered ‘overbought’ and when it’s below 30, it’s considered ‘oversold’. It’s important to note that just because a security is overbought/oversold, does not mean it’s going to reverse – Indicators can read overbought/oversold for extended periods of time. A sell signal does not occur until RSI crosses back from overbought/oversold into the 70-30 range:[/vc_column_text][/vc_column][/vc_row][vc_row full_width=”stretch_row_content_no_spaces” css=”.vc_custom_1587534820010{margin-top: 40px !important;margin-bottom: -45px !important;padding-top: 40px !important;padding-right: 15% !important;padding-bottom: 3% !important;padding-left: 15% !important;background-color: #f7f7f7 !important;}”][vc_column][boc_heading alignment=”center” css_classes=”title_page_abb”]More News Posts[/boc_heading][boc_spacing][boc_posts_carousel items_visible=”4″ navigation=”Dots” autoplay=”yes” loop=”yes” exclude_current=”yes” design_preset=”simple” excerpt_word_limit=”10″ show_read_more=”yes” img_hover_effect=”1″][/vc_column][/vc_row]