Author Topic: RSI -- Relative Strength Index  (Read 5270 times)

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RSI -- Relative Strength Index
« Reply #-1 on: September 15, 2009, 02:18:40 PM »
Developed by J. Welles Wilder and introduced in his 1978 book, New Concepts in Technical Trading Systems, the Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock's recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.

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RSI -- Relative Strength Index
« Reply #-1 on: September 15, 2009, 02:18:40 PM »

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Re: RSI -- Relative Strength Index
« on: September 15, 2009, 02:19:25 PM »
Use
Overbought/Oversold
Wilder recommended using 70 and 30 and overbought and oversold levels respectively. Generally, if the RSI rises above 30 it is considered bullish for the underlying stock. Conversely, if the RSI falls below 70, it is a bearish signal. Some traders identify the long-term trend and then use extreme readings for entry points. If the long-term trend is bullish, then oversold readings could mark potential entry points.

Divergences
Buy and sell signals can also be generated by looking for positive and negative divergences between the RSI and the underlying stock. For example, consider a falling stock whose RSI rises from a low point of (for example) 15 back up to say, 55. Because of how the RSI is constructed, the underlying stock will often reverse its direction soon after such a divergence. As in that example, divergences that occur after an overbought or oversold reading usually provide more reliable signals.

Centerline Crossover
The centerline for RSI is 50. Readings above and below can give the indicator a bullish or bearish tilt. On the whole, a reading above 50 indicates that average gains are higher than average losses and a reading below 50 indicates that losses are winning the battle. Some traders look for a move above 50 to confirm bullish signals or a move below 50 to confirm bearish signals.

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Re: RSI -- Relative Strength Index
« Reply #1 on: November 07, 2009, 11:32:29 AM »
Best use of rsi indicator is to look for a move above 50 to confirm bullish signals or a move below 50 to confirm bearish signals.
 

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Re: RSI -- Relative Strength Index
« Reply #2 on: November 07, 2009, 11:46:38 AM »
Best use of rsi indicator is to look for a move above 50 to confirm bullish signals or a move below 50 to confirm bearish signals.
 



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Re: RSI -- Relative Strength Index
« Reply #3 on: December 19, 2009, 08:43:46 PM »
Some important facts of RSI and impact on Scrip price

1 . When the RSI is above 50, the indicator is telling us that the average gain
exceeds the average loss.
2. When the RSI is below 50, the indicator is telling us that the average loss
exceeds the average gain.
3. The RSI behaves like a logarithmic curve.
4. Anytime the ratio exceeds 1 0: 1 , the market has been experiencing a very
strong move up.
5. Anytime the ratio exceeds 1 : 1 0, the market has been experiencing a very
strong down move.
6. The largest increase or decrease in the RSI value occurs when the ratio
changes from 1 : 1 to the next whole number (2: 1 or 1 :2).
7. The RSI value experiences its largest changes in value as it oscillates between
the index values of 40 and 60. In other words the RSI is most sensitive
to price change when the RSI is oscillating between 40 and 60.

An extract from the book of Hayden, John

Toshi

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Re: RSI -- Relative Strength Index
« Reply #4 on: December 19, 2009, 10:14:05 PM »
CONVENTIONAL USES OF THE RELATIVE STRENGTH INDEX

There are 9 basic beliefs concerning the best way to use the RSI:

1. Indication o f Tops and Bottoms
2. Divergence
3. Failure Swings
4. Support and Resistance Levels
5. RSI Chart Fonnations
6. Altman Modified - Smoothed RSI
7. Morris Modified RSI
8. Modification of Look Back Period
9. Modification of the Data Source Used

Toshi

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Re: RSI -- Relative Strength Index
« Reply #5 on: December 20, 2009, 12:21:52 AM »
The 10 RSI Lies that Traders Believe:

1. A bearish divergence is an indication that an uptrend is about to end
2. A bullish divergence is an indication that a downtrend is about to end
3. The RSI will generally "top out" somewhere around the 7 0 level. At this
point, we want to start thinking of getting short or at the very least exiting long
trades.
4. That the RSI will generally "bottom out" somewhere around the 30 level. At
this point, we want to start thinking of getting long or at the very least exiting
short trades.
5. Whenever the RSI is above 50, it is a bullish indication. Ifnot long, find an
excuse to get long.
6. Whenever the RSI is below 50, it's a bearish indication. Ifnot short, fmd a
reason to get short.
7. A failure swing is a significant event.
8. The RSI is unable to indicate trend direction, because it's only a momentum
indicator.
9. The RSI is unable to indicate trend reversals, because it's only a momentum
indicator.
1 0. It is not possible to use the RSI to set price objectives.

Toshi

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Re: RSI -- Relative Strength Index
« Reply #6 on: December 20, 2009, 12:24:16 AM »
PROFESSIONAL RSI USE

1. Indication of Tops and Bottoms
2. Divergence
3. Failure Swings
4. Support and Resistance Levels
5. RSI Chart Formations
6. Altman Modified - Smoothed RSI
7. Morris Modified RSI
8. Modification of Look Back Period
9. Modification of the Data Source

Offline Kamran

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Re: RSI -- Relative Strength Index
« Reply #7 on: January 04, 2010, 07:09:37 AM »
AOA Friends

you can download the book of Hayden on RSI from the following link

Remember me on you Prayers

Kamran Ahmed


http://www.4shared.com/file/187714864/25ff2d10/Hayden_John_-_RSI_The_Complete.html

Offline Admin

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Re: RSI -- Relative Strength Index
« Reply #8 on: January 04, 2010, 12:44:50 PM »
AOA Friends

you can download the book of Hayden on RSI from the following link

Remember me on you Prayers

Kamran Ahmed


http://www.4shared.com/file/187714864/25ff2d10/Hayden_John_-_RSI_The_Complete.html


not openin plz check the format of the file
its html

Toshi

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Re: RSI -- Relative Strength Index
« Reply #9 on: January 04, 2010, 02:05:23 PM »
AOA Friends

you can download the book of Hayden on RSI from the following link

Remember me on you Prayers

Kamran Ahmed


http://www.4shared.com/file/187714864/25ff2d10/Hayden_John_-_RSI_The_Complete.html


not openin plz check the format of the file
its html

Farzooq bhai, I think we dont need any link for this book becoz our Super Cock already had provided the link in the topic of Ebooks on Technical Analysis & Trading
for the same book.

However the efforts wil be appreciated if Mr. Kamran will share some new book.

Offline Farzooq

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Re: RSI -- Relative Strength Index
« Reply #10 on: May 29, 2010, 01:19:04 PM »
Use
Overbought/Oversold
Wilder recommended using 70 and 30 and overbought and oversold levels respectively. Generally, if the RSI rises above 30 it is considered bullish for the underlying stock. Conversely, if the RSI falls below 70, it is a bearish signal. Some traders identify the long-term trend and then use extreme readings for entry points. If the long-term trend is bullish, then oversold readings could mark potential entry points.

Divergences
Buy and sell signals can also be generated by looking for positive and negative divergences between the RSI and the underlying stock. For example, consider a falling stock whose RSI rises from a low point of (for example) 15 back up to say, 55. Because of how the RSI is constructed, the underlying stock will often reverse its direction soon after such a divergence. As in that example, divergences that occur after an overbought or oversold reading usually provide more reliable signals.

Centerline Crossover
The centerline for RSI is 50. Readings above and below can give the indicator a bullish or bearish tilt. On the whole, a reading above 50 indicates that average gains are higher than average losses and a reading below 50 indicates that losses are winning the battle. Some traders look for a move above 50 to confirm bullish signals or a move below 50 to confirm bearish signals
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Offline Ahmedkhan

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Re: RSI -- Relative Strength Index
« Reply #11 on: October 09, 2015, 10:01:51 PM »
Maine ya indicator boht use keya ha magar ya zada tar long term k lia suitable ha to hume boht hi careful rehna chaiya hum kis tara work karte hain. Main abhe OctaFX broker k sath work kar rah hon jo boht hi zabardast company ha aur mere lia kafi easy kar deti ha long term karna kiu k yahan swap free account option available ha aur is ki waja se mujhe koi fees nahi deni parhti agar trade agle din bhe chali jai to is waja se ya sab se best ha.

Offline Thelma

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Re: RSI -- Relative Strength Index
« Reply #12 on: January 21, 2016, 03:33:39 PM »
Where can we find a list of RSI for different stocks

Offline Ahmedkhan

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Re: RSI -- Relative Strength Index
« Reply #13 on: July 19, 2016, 11:17:24 PM »
Mai ya indicator boht zada isstemal karta hon kiu k ya boht hi simple ha magar kafi zada effective ha to is waja se mujhe itna pasand ha aur filhaal mai OctaFX broker k sath kam kar raha hoon jahan cTrader platform ha jis se ya indicator istemal karne mai aur asani rehti ha aur hum sukoon se kam kar sakte hain aur ya simple bhe ha to ise trade karne mai bhe boht asani rehti ha aur hum sukoon se profits kama sakte hain.

Offline SameerKhan

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Re: RSI -- Relative Strength Index
« Reply #14 on: May 30, 2017, 02:33:36 AM »
Ahmed mai bhe OctaFX broker k sath kam kar rah hoon aur jese k apne bataya k cTrader platform ki waja se trading karne mai boht hi asani rehti ha. Mai in k ECN account se trading kar rah hoon jis k zariya mere lia kam karna boht asan rehta ha aur ise bhe bari baat ha k yahan har cheez majood ha kam se kam spread se le kar deposit bonus tak jo 50% tak ha to ise kam karne mai boht hi zada asani rehti ha har kisi k lia.

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