Rule to choose company that suitable for RSI

Rule to choose company that suitable for RSI - Rule to...

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Rule to choose company that suitable for RSI - Have a long historical data Taking the prior value plus the current value is a smoothing technique similar to that used in exponential moving average calculation. This also means that RSI values become more accurate as the calculation period extends - Stocks have high volatility: RSI is a indication that shows of the trends of a stock or commodity or market index. This doesn’t measure differentiate between stock and other stock. RSI simply compare a stock with it’s historical data to shows the time movement of this stock. Thus, the more volatility of stock, the clearer trend. The level of the RSI is a measure of the stock's recent trading strength. The slope of the RSI is directly proportional to the velocity of a change in the trend. The distance traveled by the RSI is proportional to the magnitude of the move. Wilder believed that tops and bottoms are indicated when RSI goes above 70 or drops below 30. Traditionally, RSI readings greate r than the 70 level are considered to be in overbought territory, and RSI readings lower than the 30 level are considered to be in oversold territory. In between the 30 and 70 level is considered neutral, with the 50 level a sign of no trend. Overbought-Oversold Wilder considered RSI oversold below 30 and overbought above 70 . From oversold levels, RSI moved oversold August to become overbought in December. The trend change gradually.downtrend for several weeks from overbought, RSI decreases
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approximately 30. And this trend seems very strong, the peak get in mid December
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Rule to choose company that suitable for RSI - Rule to...

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