What does the RSI indicator mean, what does the RSI indicator mean

RSI is the relative strength index, which is a technical curve made according to the ratio of the sum of ** and ** amplitude in a certain period of time, which is used to measure the relationship between supply and demand in the market and the buying and selling force, which can reflect the degree of prosperity of the market in a certain period.

Principles for the use of RSI indicators:

1 Due to the calculation formula, the value of the Strength Index is between 0 and 100, regardless of the price change.

2.A strength indicator above 50 indicates a strong market, while a strength indicator below 50 indicates a weak market.

3.The strength index mostly fluctuates between 70 and 30. When the 6-day indicator rises to 80, it means that ** has been overbought, if it continues to rise, more than 90, it means that it has reached the warning area of serious overbought, and the stock price has formed a head, which is very likely to reverse in the short term.

4.When the 6-day strength indicator falls to 20, it means that there is an oversold phenomenon, and if it continues to fall below 10, it means that it has reached a serious oversold area, and the stock price is very likely to have a chance to stop falling and rebound.

The divergence of the RSI indicator is used for **** has a very large reference significance, and may not have much effect on **. But if you want to use this indicator to capture the best entry points, it is best to talk about it in conjunction with its volatility zone. According to many years of personal experience, the 6-day RSI indicator value often has the best chance when it falls below 20, and the best range of this opportunity can only rely on the pattern formed by the 6-day RSI and 14-day RSI indicators.

There are two important points to note:

1. If the 6-day RSI falls below 20 and does not form a slightly larger ****, and it is in a sideways downward channel at that time, then there may be a ** process.

2. If the RSI hovers below 20 for several days on the 6th, then you can consider using the RSI indicator divergence function to identify whether it has formed a medium-term bottom.

Finally, it is emphasized that although the use of RSI indicators can reduce losses, RSI can only be used as a warning signal, which does not mean that the market will continue to develop in this direction, especially when the market is drastic, we should also refer to other indicators for comprehensive analysis, and cannot simply rely on RSI signals to make buying and selling decisions.

These can be slowly comprehended, novices can refer to the relevant aspects of the book system to understand, at the same time combined with a simulation of the practice, so that the theory and practice can quickly and effectively master the skills, the current **treasure simulation** is not bad, many of the functions are enough to analyze **and**, to use it to a certain extent, I hope it can help you, I wish you a happy investment!

RSI was first used in trading, and later it was found that the use of this indicator to guide the market investment effect is also very good, and the characteristics of the indicator are constantly summarized and summarized. Now, RSI has become one of the most widely used technical indicators by investors. The general principle of investment is that the buying and selling behavior of investors is a reflection of the combined results of various factors, and the change of ** ultimately depends on supply and demand, while the RSI indicator.

It is based on the principle of supply and demand balance, by measuring the average value of the total range of stock price changes in a certain period.

to assess the strength of the long and short forces, and then suggest the specific operation. On the surface, the application rules of RSI are complex, including crossover, numerical, morphological and divergence judgment principles.

The official website shall prevail.

RSI is known as the Strength Indicator, also known as the Relative Strength Index and the Relative Strength Index. It is to use the ratio of the average ** price increase to the average ** price decline in a certain period of time to reflect the ** trend. The inventor of RSI, Wells

Wilder) prefers to take advantage of the 14-day RSI.

Calculation formula: RSI(N) N intraday increase (n intraday decline value n intraday decline value) 100

Analyze the essentials of RSI:

The indicator needs to cooperate with other technical indicators to jointly study and judge the ** trend.

The selection time can be long or short, but the short time should be set at 5 or 6 days. The long period is set at 14 or 15 days. The mid-term is set at 10 days.

Generally, the short-term RSI value fluctuates greatly, the long-term RSI value has strong regularity, and the medium-term RSI value takes advantage of both. Therefore, the medium-term RSI value should be the main value, and the short-term and long-term RSI values should be appropriately referenced.

When the value rises to 70, it has reached the upper limit, and investors can no longer chase the rise, and should sell **. When the RSI value drops to 30, it has entered the lower bound, and investors should adjust their mentality and purchase goods in a timely manner. If the RSI value is above 70 and below 30, it indicates an abnormality.

Investors should be careful.

The Relative Strength Index (RSI) is a technical curve based on the ratio of the sum of ** points and the sum of the rise and fall points in a certain period. It can reflect the degree of prosperity of the market in a certain period of time.

RSI indicators by Wells. WILD Flavors and Specialty Ingredients was first used in trading, and later it was found that in many chart technical analysis, the theory and practice of strength indicators are extremely suitable for the investment of the market, so they are used in the measurement and analysis of the rise and fall. The design of the analysis indicator is to reflect the strength of the trend with three lines, which can provide investors with an operating basis and is very suitable for the spread operation.

The principle of RSI is simply to find the power of buyers and sellers by the method of numerical calculation, for example, if 100 people face a commodity, if more than 50 people want to buy, compete to raise the price, the commodity will rise. Conversely, if more than 50 people are vying to sell, it is natural.

The theory of strength and weakness indicators believes that any market price rises or falls sharply, are between 0-100, according to the normal distribution, it is believed that the RSI value changes between 30-70, usually 80 or even 90 is considered that the market has reached an overbought state, so the market will naturally fall back and adjust. When the low falls below 30, it is considered oversold, and the market price will recover.

First, how to use:

1) When the RSI is at a high level, but after creating a new high in the recent RSI, it forms a trend of one peak lower than the other, and at this time, the stock price on the ** chart has hit a new high again, forming a trend of one peak higher than the other, which is the top divergence. The top divergence phenomenon is generally a signal that the stock price is about to reverse at a high level, indicating that the stock price is about to ** in the short term, which is a sell signal.

2) The bottom divergence of RSI generally occurs in the low zone below 20. When the stock price on the chart goes all the way, forming a wave of lower than a wave, and the RSI line is the first to stop falling and stabilize at a low level, and form a trend that is higher than the bottom, this is the bottom divergence. The phenomenon of bottom divergence generally indicates that the stock price may be ** in the short term, which is a signal for the short term**.

5 major opportunities.

1) The current low does not break the original low;

2) RSI <20, when the trading volume shrinks for several consecutive days;

3) When the RSI is around 20, when the head and shoulders floor or W floor is presented;

4) When the 6-day RSI breaks through the 14-day RSI upwards (especially reliable when the RSI < 30);

5) When SAR breaks through the extension of the tangent line of two consecutive peaks of RSI from the bottom up.

1. RSI1 (white line) falls below 20 and breaks through 20 upwards, which is the first signal.

When RSI1 (white line) falls below 20, it means that the market has entered an oversold state, and there is not much room for the stock price to continue to **. When RSI1 (white line) bottoms out and rises above 20, you can increase your position****.

2. RSI1 (white) and RSI2 (yellow) low golden cross, ** signal.

RSI1 (white line) and RSI2 (yellow line) are both below 50, and together**, when RSI1 (white line) breaks through RSI2 (yellow line) upwards to form a golden cross, this is a very strong** signal, can be positive****. If the volume also shows a mild amplification pattern, the bullish signal is even stronger.

3. RSI1 (white line) fell below 80 from its high, which is a sell signal.

When the RSI (white line) breaks through 80, it means that the market has entered an overbought state, and the space for the stock price to continue to ** is very effective, and it is time to sell it appropriately**. Wait and see. If RSI1 (white line) peaks and falls below 80, you can liquidate your position.

4. RSI1 and RSI2 are high death forks, and the sell ** signal is issued.

RSI1 and RSI2 are running down together at a high level, and RSI1 has fallen below RSI2 to form a death fork, which means that the bears have the upper hand and should sell the ** in their hands as soon as possible.