1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

RSI

Discussion in 'Technical Analysis' started by prabhu_v, Sep 4, 2016.

  1. prabhu_v

    prabhu_v New Member

    Joined:
    Aug 18, 2016
    Messages:
    3
    Likes Received:
    1
    Shabbir

    Please explain when to check RSI for buying and selling shares. Most of the times RSI says over bought or over sold but the stock continues its trend, please advise.
     
    prabhu_v, Sep 4, 2016
    Share #1
  2. dsatyanandam

    dsatyanandam Member

    Joined:
    Aug 26, 2016
    Messages:
    3
    Likes Received:
    5
    Sir,
    If any stock goes up with nearly 30 to 45% angle it continues to do so with minor corrections. When the RSI comes to over sold zone that means the correction is over and resume it's up trend. We must enter the trade with strict stop loss.
    The vice versa also true for down trend. Some times the stock remains in over bought zone for more time. So for uptrend stocks we must use over sold zone for buying the security but not selling in the over bought zone.
     
    dsatyanandam, Sep 4, 2016
    Share #2
    shabbir likes this.
  3. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,702
    Likes Received:
    1,940
    To be brutally honest, I never do it.

    Actually I don't like using those mathematical numbers to tell me when to buy and when to sell because what I think is there is a false positive in each of those methods and so you need human intervention to trade else humans would have become history in the trading and investing world.

    Again this does not mean that it does not work and it works for people as an extra indicator but I tend to avoid it.
     
    shabbir, Sep 4, 2016
    Share #3
    yankeedin likes this.
  4. narendrakurajak

    narendrakurajak Member

    Joined:
    Sep 6, 2016
    Messages:
    13
    Likes Received:
    10
    Do shabbir sir what you do instead
     
    narendrakurajak, Sep 6, 2016
    Share #4
  5. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,702
    Likes Received:
    1,940
    I use price action where I trade with double bottom pattern, breakout pattern and higher top higher bottom pattern.
     
    shabbir, Sep 6, 2016
    Share #5
  6. narendrakurajak

    narendrakurajak Member

    Joined:
    Sep 6, 2016
    Messages:
    13
    Likes Received:
    10
    How the price action can be defined in simple way
     
    narendrakurajak, Sep 6, 2016
    Share #6
  7. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,702
    Likes Received:
    1,940
    shabbir, Sep 6, 2016
    Share #7
  8. nakkeeranjohn

    nakkeeranjohn New Member

    Joined:
    Aug 14, 2012
    Messages:
    4
    Likes Received:
    3
    RSI is one indicator, alone will not solve your purpose secondly lagging indicator after the movement only it shows. It will work along with stochastic indicator also

    Sent from my Lenovo K50a40 using DIY Technical Analysis mobile app
     
    nakkeeranjohn, Sep 7, 2016
    Share #8
    nirajshah, narendrakurajak and shabbir like this.
  9. narendrakurajak

    narendrakurajak Member

    Joined:
    Sep 6, 2016
    Messages:
    13
    Likes Received:
    10
    Hi nak can you provide any source where I can check the mention combination of indicators RSI and stochastic. How we can apply both
     
    narendrakurajak, Sep 7, 2016
    Share #9
    nirajshah likes this.
  10. mdsafdarimam

    mdsafdarimam Active Member

    Joined:
    Sep 19, 2016
    Messages:
    19
    Likes Received:
    32
    Occupation:
    EQUITY & COMMODITY TRADER
    in an uptrend there is no overbought levels & in downtrend there is no oversold levels. avoid using RSI in DAY TRADING ,otherwise you will loose majority of trades. market do not see these levels and react , it is only the newbies who are fascinated with these levels. only & only PRICE ACTION is important try to learn it, spot it and apply it. if you are still fascinated with RSI or STOCHASTIC then have these indicators on MONTHLY and WEEKLY CHARTS it will serve there better.
     
    mdsafdarimam, Sep 22, 2016
    Share #10
    akuvijay, nirajshah and shabbir like this.