RSI Explained | Know When to Buy or Sell 📊 | Trading Tips & Strategies
Understanding RSI: A Trader’s Guide
When will the stock go up and when will it go down? To know this, traders use RSI. But guess what? By watching the video till the end, you will also learn how to use this indicator.
What Is RSI?
RSI stands for Relative Strength Index. In this, we get a number in the range of 0 to 100, which indicates the price momentum.
How to Interpret RSI Levels
Generally, when RSI is above 70, then there is an uptrend in the price. It means the stock is overbought and there can be a correction. If RSI is below level 30, it means the price is falling. People are overselling the stock and this can be a good time to buy entry.
Pro Tips for Using RSI
But before scrolling, listen to these pro tips. There is a formula to find the RSI number, which factors in both average gain and average loss. That's why you might see that the price is going down, but RSI is up and vice versa. This condition is called divergence.
No comments:
Post a Comment