Use the RSI to determine what factors depend on the overbought and oversold ranges

KDJ's full name is Stochastics, created by Dr. George Lane of the United States, and its comprehensive momentum concept, strength indicator and moving level are also a commonly used technical analysis tool in the European and American markets. The ideas and calculation formulas of the stochastic indicator design are derived from William's (w%r) theory, but it is more valuable than the w%r indicator, which is generally limited to the overbought and oversold phenomenon used to judge **, while the stochastic indicator integrates the idea of moving flat**, and the judgment of buying and selling signals is more accurate; It is an overbought and oversold indicator that fluctuates between 0-100, composed of k, d, j three curves, in the design of the synthesis of momentum indicators, strength index and some advantages of the moving level, in the calculation process of the main study of the relationship between the high and low prices and the price, that is, by calculating the real volatility of the day or the last few days, the lowest price and the price of the price, etc., fully consider the random amplitude of the fluctuation and the calculation of the short-term fluctuations, so that its short-term market measurement function is more accurate and effective than the moving level, In terms of short-term overbought and oversold in the market, it is more sensitive than the relative strength indicator RSI, in short, KDJ is a random fluctuation concept, reflecting the strength of the trend and the trend of the band, and it is very sensitive to grasp the trend of the short and medium term.

RSI: Relative Strength Indicator.

The lower limit of RSI is 0, the upper limit is 100, and 50 is the central axis of RSI, that is, the dividing line between long and short sides. Above 50 is a strong zone (multi-market), and below 50 is a weak zone (empty.

square market), below 20 is the oversold area, and above 80 is the overbought area. Buying points of the RSI indicator: (1) W shape or head and shoulders bottom When the RSI forms a W shape or head at the low or bottom.

When the shoulder floor is shaped, it is the best period. (2) Below 20 When the RSI runs below 20, it enters the oversold area, and it is easy to produce a rebound. (3) Golden fork when short days.

When the RSI of the period crosses the RSI of the long period upwards, it is a ** signal. (4) Bull divergence When the stock index or stock price is lower than one wave, and the RSI is higher than one wave, it is called bull back.

At this time, the stock index or stock price can easily reverse**. Selling points of the RSI indicator: (1) Pattern M-shaped, head and shoulders top shape When the RSI forms an M shape or head and shoulders top at a high or top.

It is the best time to sell. (2) Above 80 When the RSI runs above 80, it enters the overbought zone, and the stock price is easy**. (3) Top divergence when stock index or.

When the stock price hits a new high, but the RSI does not make a new high, it is called a top divergence, which will be the best time to sell. (4) Death fork When the short-term RSI crosses the long-term RSI, it is called a death fork, which is a sell signal.

RSL and KDJ are only calculated differently, starting from the calculation of ** and the volume and transaction price. KDJ to see ** clearly, RSL to see the center line clearly, it is recommended to set RSL to 12 72

This course is the first course in the WR indicator series, which mainly explains the parameter optimization of the WR indicator and the skills of judging overbought and oversold to the probability of the top and bottom of the market;

1. The range of RSI values is between 0 and 100, and the theory of strength and weakness indicators believes that the rise and fall of any ** is between 0 and 100. Generally speaking, when the RSI value remains above 50, it is a strong market; When it is below 50, it is a weak market.

2. When the RSI value fluctuates between 50 and 70, it indicates that the market is overbought, if it continues to rise, when it exceeds 90, it has reached a serious overbought area, ** has formed a top, and it is very likely to turn up to fall in the short term.

3. When the RSI value drops to 30-50, it indicates that the market has entered an oversold state; Once it falls below 10, it indicates that it has entered a severely oversold zone, and ** may stop falling and recover.

4. RSI rises and **on the contrary**, or RSI falls on the contrary, this situation is called divergence. Divergence means that the market is likely to reverse.

5. When RSI goes from 20 or 80 back to 50, it indicates the completion of a trend; Leaving 50 indicates the beginning of a trend.

Extended information: 1. The determination of the RSI overbought and oversold range depends on the following two factors: The first factor is the characteristics of the market, and a stable market with little fluctuation can generally stipulate that the RSI value above 70 is overbought, and below 30 is oversold.

A market with a more volatile change can stipulate that an RSI value above 80 is overbought and below 20 is oversold. The second factor is the time parameter taken to calculate the RSI, and the definition of overbought and oversold is different depending on the time parameter.

2. For example, according to the reference range, an RSI value with a period of 14 exceeds 70 and is oversold. When RSI 14 is greater than 85, it is seriously overbought and can be considered short; When RSI 14 is less than 15, it is seriously oversold, and you can consider going long; When RSI 14 is greater than 90, you can go short; When RSI 14 is less than 10, you can go long; When the RSI value is between 40 and 60, the actual market is in a consolidation pattern;

3. 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****.

The RSI indicator is divided into three values, among which, when the indicator runs below 20, it indicates that ** has entered the oversold area, the short-term warning risk is coming, and it is not possible to chase short, **may appear**or**; When the indicator runs above 80, it indicates that ** has entered the overbought area, **warning risk is coming, you can't chase more, **there may be an adjustment or**; As shown in Fig.

The RSI indicator needs to be combined with the stagflation and stop falling of the ** dividing line and ** to make a comprehensive judgment in the buying and selling judgment, and the indicator itself mainly plays a short-term warning role.

Answer] :d Answer and Analysis] D William indicator WMS measures the overbought and oversold state of ** by analyzing the relationship between the high and low price of the stock price and the ** price over a period of time, and uses it as a short-term investment signal or a technical indicator; PSY is a positive indicator of psychological focus, which judges the future trend of stock prices from the psychological aspect of investors' buying and selling trends; RSI is a relative strength indicator, which speculates on the future direction of the stock price based on the change of the stock price in a specific period, and shows the strength of the market according to the rise and fall of the stock price. Therefore, choose D.

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. According to the principle of supply and demand balance, the RSI indicator evaluates the strength of the long and short forces by measuring the percentage of the total amplitude of the stock price in a certain period to the average value of the total amplitude of the stock price change, and then prompts specific operations.

In general, an RSI between 40 and 60 is not very useful. According to the application principle of RSI, when RSI breaks through the 50 dividing line from below 50, it means that the stock price has become stronger; If the RSI breaks the 50 threshold from above 50 to **, it means that the stock price has weakened. However, the actual situation is often confusing investors, and it is quite common for stock prices to not fall after turning from strong to weak, and not rising after changing from weak to strong.

This is because under normal circumstances, the RSI will be the first to consolidate and strengthen or weaken when the direction of ** or ** is unclear and consolidated.

Cross-over case: Short-term RSI refers to RSI with relatively small parameters, and long-term RSI refers to RSI with relatively long parameters. For example, in a 6-day RSI and a 12-day RSI, the 6-day RSI is the short-term RSI and the 12-day RSI is the long-term RSI.

The crossover of the long-term and short-term RSI lines can be used as a method for us to judge the best.

1.When short-term RSI > long-term RSI, the market is bullish;

2.When the short-term RSI is the market is short;

3.When the short-term RSI line breaks through the long-term RSI line at a low level, it is generally the "** cross" of the RSI indicator, which is the ** signal;

4.When the short-term RSI line breaks through the long-term RSI line downwards at a high level, it is generally a "death cross" of the RSI indicator, which is a sell signal.

Specifically, you can refer to the relevant aspects of the book system to learn it, and at the same time use a simulation of the practice, so that the theory and practice can be quickly and effectively mastered the method, the current **treasure simulation** is not bad, there are a number of indicators to guide, each indicator has a detailed description of how to use, the use of a certain help, I hope to help you, happy investment!

The RSI is one of the most popular and used technical indicators, and it was created by the master of technical analysis. RSI can be applied to markets such as **, ** and Forex. The index is determined by the supply and demand in the index, and the index can be stable when the demand is balanced.

RSI is based on the principle of supply and demand balance, which is used to measure the strength of the buying and selling forces of the long and short sides.

The RSI Relative Strength Index uses the movement of stock prices in a specific period to predict the future direction of movement. In fact, RSI calculates the ratio of stock price rise and fall in a certain period of time, measures the strength of the internal constitution, and selects strong stocks according to the principle of selecting the strong and eliminating the weak.

1 How the RSI indicator is calculated.

RS (Relative Strength Value) The number and average value of the index in a certain period, and the number and average value of the index in a certain period.

RSI (Relative Strength Index) 100 1001+RS

The calculation formula of RSI actually reflects the percentage rate of the fluctuation generated by **** in a certain stage of the total fluctuation, the larger the percentage, the more obvious the strength; The smaller the percentage, the more obvious the vulnerability. The value of RSI ranges from 0 to 100. After calculating the RSI value of a certain day, the RSI value can be calculated by using the smoothing algorithm, and the curve formed by the RSI value on the coordinate chart is the RSI line.

Overbought and oversold with an RSI value of 2.

Generally speaking, an RSI value above 80 and below 20 is the dividing line between the overbought and oversold zones.

1) When the RSI value exceeds 80, it means that the strength of the entire market is too strong, the power of the bulls is much greater than the power of the bears, the power of the two sides is very different, the bulls win, the market is in an overbought state, and the follow-up may appear or turn around, at this time, investors can sell.

2) When the RSI value is lower than 20, it means that there are more selling orders than buying orders in the market, and the bears are stronger than the bulls.

Answer]: The ARSI value is 80 100, indicating that the market is overbought. (p181)