The RSI, or relative strength index, is a technical indicator that, if used correctly, can help you predict a stock's next move. In my opinion, the RSI is one of the most important indicators out there, which is why I look at it almost every time I plan on initiating a position. Generally, a stock is said to be oversold when its relative strength is 20%, and overbought when its relative strength reaches 80%. However, this is not true for all stocks. I find that certain stocks become overbought/oversold once their RSI reaches a certain percentage. For some, the RSI is most accurate for predicting a single direction. For example, a certain stock may remain overbought for a long time, and in that scenario, the RSI is no help when trying to figure out when to sell (or get short). With that said, this stock may be a buy every time the RSI hits a certain percentage. I have compiled five stocks that trade off their RSI like clockwork. Each stock name has a textual translation of the RSI strike points - when to buy and sell (or short) - and pictures for some validity.
0 Comments
Leave a Reply. |