ATFX:indexrsiWhat do you mean?,Investing away from orders

In most stock software, there are some classic indicators, one of which is the relative strength indicatorRSI。 But for friends who have just entered the market, they do not know the indicators at allrsiWhat do you mean??Let's take a look at the relevant knowledge together, after all, many people do not know its true meaning.

indexrsiWhat do you mean??

Relative strength indexRSIIt is a technical curve created based on the ratio of the sum of rising and falling points over a certain period of time, which can reflect the level of market prosperity during a certain period of time. The design of this analysis indicator is to reflect the strength of price trends through three lines, which can provide investors with operational basis and is very suitable for short-term price difference operations.

indexrsiBy Wells Wilder(Welles Wilder)First applied tofuturesBuying and selling, it was later discovered that the theory and practice of strength indicators were extremely suitable for short-term investment in the stock market among numerous chart techniques, and were therefore used for measuring and analyzing the rise and fall of stocks.

RSIIn simple terms, the principle is to use numerical calculations to calculate the power comparison between the buyer and the seller, such as:100If an individual faces a product50Individuals and above who want to buy, compete to raise prices, and the prices of goods will inevitably rise. On the contrary, if50Individuals above are competing to sell, and the price naturally drops.

The strength indicator theory suggests that any significant increase or decrease in market price is within the range of0-100Between changes, according to normal distribution, it is believed thatRSIMore values are present in30-70Between changes, usually80even to the extent that90It is believed that the market has reached an overbought state, and at this point, market prices will naturally fall and adjust. When the price drops to30The following is considered an oversold state, and the market price will rebound and rebound.

indexrsiThere are several main uses, as follows:

1Vertex and base points70and30Usually it is an overbought and oversold signal.

2Disagreements(Or deviate from it)When the market conditions reach a new high(low)butRSINot at a new high(low)This usually indicates a market reversal.

3Support and resistance,RSIIt can display support and resistance levels, sometimes more clearly reflecting support and resistance than price charts.

4Compared to the price chart, the price trend pattern, such as double tops and head shouldersRSIThe performance is clearer.

5Turning from peak to peakRSIBreach(Exceeding previous high or low points)This may indicate that there will be a sudden change in prices, similar to other indicators, RSIIt needs to be used in conjunction with other indicators and cannot generate signals separately. Price confirmation is the key to determining the entry price.