I. Relative strength index
The relative strength index is a technical curve based on the ratio of the sum of the rising range and the falling range in a certain period. It can reflect the prosperity of the market in a certain period.
RSI value to determine the direction of operation.
The RSI value divides the range from 0 to 100 into four regions: extremely weak, weak, strong and extremely strong. The dividing line between "strong" and "weak" is 50, but the boundaries between "extremely weak" and "strong" and "extremely strong" will change with the change of RSI parameters. The division of regions is different with different parameters. Generally speaking, the larger the parameter, the closer the dividing line is to the center line 50 and the farther it is from l00 and 0. However, it should generally be in the range of15,30 to 70,85. If the RSI value exceeds 50, it means that the market has entered a strong market and can consider buying. However, if it continues to enter the "extremely strong" area, it is necessary to consider the extremes meet and prepare to sell. Similarly, if the RSI value is below 50, if it enters the "extremely weak" area, it means that it is oversold and should wait for an opportunity to buy.
Intersection of long-term and short-term RSI lines
Short-term RSI refers to RSI with relatively small parameters, and long-term RSI refers to RSI with relatively long parameters. For example, RSI on 6th and RSI on 12, RSI on 6th is a short-term RSI, and RSI on 12 is a long-term RSI. The intersection of long-term and short-term RSI lines can be used as a method for us to judge the market.
1, when the short-term RSI >；; In the long-term RSI, the market is a bull market;
2. When the short-term RSI
3. When the short-term RSI line breaks through the long-term RSI line at a low level.
Second, the formula
I. Principle and calculation of RSI:
Relative strength index (RSI) is a method and index used to measure the relationship between market supply and demand and the buying and selling power.
Calculation formula:
N-day average closing gain.
RSI = ————————————×100 for n consecutive days.
N-day average closing increase +n-day average closing decrease.
From the above formula, we can know the technical meaning of RSI index, that is, more upward force and downward force. If the upward force is greater, the calculated index will rise; If the downward force is great, the index will drop, thus measuring the strength of the market trend.
Second, the application of RSI
1, according to the formula, 0≤RSI≤ 100. RSI = 50 is the dividing point between a strong market and a weak market. RSI & gt80 is usually set as an overbought area, and the probability of market reversal increases; RSI & lt20 is an oversold area, so the chances of market rebound increase.
2. Generally speaking, RSI turns down to be a selling signal, and RSI turns up to be a buying signal. But the application should proceed from the judgment of the overall situation.
3. The M-shaped trend of 3.RSI is a common peak shape in overbought areas; W-shaped trend is a common bottoming form in oversold areas. At this time, it is often seen that the RSI trend deviates from the price trend. Therefore, the deviation phenomenon is also a buying and selling signal.
4.RSI from bottom to top, one trough is higher than the other, forming a rising support line; RSI from top to bottom, a peak is lower than a peak to form a downward pressure line. Falling below the support line is a selling signal, and rising above the pressure line is a buying signal.
5.RSI crosses the 50 demarcation line for buying signal and breaks the 50 demarcation line for selling signal.
6. the n value of n-day RSI is usually 5 ~ 14 days. The greater the value of n, the stronger the sense of trend, but there is a tendency to lag behind, which is called slow line; The smaller the value of n, the more sensitive it is to change, but it is easy to produce a sense of drift, which is called the fast line. Therefore, the slow line can be compared with the fast line. If the two lines are in the same direction, the upward trend is stronger; If the two lines are in the same direction, the decline is strong; If the fast line crosses the slow line as a buy signal; If the fast line crosses the slow line, it is a sell signal.
7. Because of the design of RSI, even after RSI enters the overbought area or overbought area, the market price fluctuates greatly, and the change rate of RSI becomes slower and smaller, that is, the so-called passivation problem appears. Especially when it continues to rise or fall, it is easy to regret that buying and selling is "too hasty". The solution to this problem is to adjust the definition index of overbought area or overbought area only from the RSI index itself, such as above 90 and below 10; The second is to increase the value of n.
Application rules of three RSI indicators
Introduction of Relative Strength Index (RSI)
I. Relative strength index
The relative strength index is a technical curve based on the ratio of the sum of the rising range and the falling range in a certain period. It can reflect the prosperity of the market in a certain period.
RSI value to determine the direction of operation.
The RSI value divides the range from 0 to 100 into four regions: extremely weak, weak, strong and extremely strong. The dividing line between "strong" and "weak" is 50, but the boundaries between "extremely weak" and "strong" and "extremely strong" will change with the change of RSI parameters. The division of regions is different with different parameters. Generally speaking, the larger the parameter, the closer the dividing line is to the center line 50 and the farther it is from l00 and 0. However, it should generally be in the range of15,30 to 70,85. If the RSI value exceeds 50, it means that the market has entered a strong market and can consider buying. However, if it continues to enter the "extremely strong" area, it is necessary to consider the extremes meet and prepare to sell. Similarly, if the RSI value is below 50, if it enters the "extremely weak" area, it means that it is oversold and should wait for an opportunity to buy.
Intersection of long-term and short-term RSI lines
Short-term RSI refers to RSI with relatively small parameters, and long-term RSI refers to RSI with relatively long parameters. For example, RSI on 6th and RSI on 12, RSI on 6th is a short-term RSI, and RSI on 12 is a long-term RSI. The intersection of long-term and short-term RSI lines can be used as a method for us to judge the market.
1, when the short-term RSI >；; In the long-term RSI, the market is a bull market;
2. When the short-term RSI
3. When the short-term RSI line breaks through the long-term RSI line at the low position.
Second, the formula
I. Principle and calculation of RSI:
Relative strength index (RSI) is a method and index used to measure the relationship between market supply and demand and the buying and selling power.
Calculation formula:
N-day average closing gain.
RSI = ————————————×100 for n consecutive days.
N-day average closing increase +n-day average closing decrease.
From the above formula, we can know the technical meaning of RSI index, that is, more upward force and downward force. If the upward force is greater, the calculated index will rise; If the downward force is great, the index will drop, thus measuring the strength of the market trend.
Second, the application of RSI
1, according to the formula, 0≤RSI≤ 100. RSI = 50 is the dividing point between a strong market and a weak market. RSI & gt80 is usually set as an overbought area, and the probability of market reversal increases; RSI & lt20 is an oversold area, so the chances of market rebound increase.
2. Generally speaking, RSI turns down to be a selling signal, and RSI turns up to be a buying signal. But the application should proceed from the judgment of the overall situation.
3. The M-shaped trend of 3.RSI is a common peak shape in overbought areas; W-shaped trend is a common bottoming form in oversold areas. At this time, it is often seen that the RSI trend deviates from the price trend. Therefore, the deviation phenomenon is also a buying and selling signal.
4.RSI from bottom to top, one trough is higher than the other, forming a rising support line; RSI from top to bottom, a peak is lower than a peak to form a downward pressure line. Falling below the support line is a selling signal, and rising above the pressure line is a buying signal.
5.RSI crosses the 50 demarcation line for buying signal and breaks the 50 demarcation line for selling signal.
6. the n value of n-day RSI is usually 5 ~ 14 days. The greater the value of n, the stronger the sense of trend, but there is a tendency to lag behind, which is called slow line; The smaller the value of n, the more sensitive it is to change, but it is easy to produce a sense of drift, which is called the fast line. Therefore, the slow line can be compared with the fast line. If the two lines are in the same direction, the upward trend is stronger; If the two lines are in the same direction, the decline is strong; If the fast line crosses the slow line as a buy signal; If the fast line crosses the slow line, it is a sell signal.
7. Because of the design of RSI, even after RSI enters the overbought area or overbought area, the market price fluctuates greatly, and the change rate of RSI becomes slower and smaller, that is, the so-called passivation problem appears. Especially when it continues to rise or fall, it is easy to regret that buying and selling is "too hasty". The solution to this problem is to adjust the definition index of overbought area or overbought area only from the RSI index itself, such as above 90 and below 10; The second is to increase the value of n.
Application rules of three RSI indicators
1. The short-term RSI value of white is below 20, and the long-term RSI value of yellow crosses from bottom to top.
Time is a buying signal.
2. The short-term RSI value of white is above 80, and the long-term RSI value of yellow crosses up and down.
This is a sell signal.
3. The short-term RSI value exceeds 50 from top to bottom, indicating that the stock price is weak.
4. The short-term RSI value exceeds 50 from bottom to top, indicating that the stock price has turned stronger.
5. When the RSI value is higher than 80 and enters the overbought area, the stock price may form a short-term retracement at any time.
6. When the RSI value is lower than 20 and enters the oversold area, the stock price may form a short-term rebound at any time.
7. The stock price is getting higher and higher, while the RSI is getting lower and lower. Form a top deviation, the market can
Can turn the tide. Judging by RSI, the bottom figure is not obvious.
8. Connect two consecutive low points A and B of RSI into a straight line, when RSI
When it falls below this line, it is a sell signal.
9. Connect two consecutive peaks C and D of RSI into a straight line, when RS
When I break this line, it is a buy signal.
10. To confirm whether RSI enters overbought area or crosses Line 50.
Long-term RSI should be used as much as possible to reduce wire transfer fraud. The short-term relative strength index is less than 50.
The middle boundary, but RSI has not worn down for a long time, indicating that its upward trend has not changed, and it is short below 50.
RSI is a "cheating line", which is confirmed by the wave of stock price rise in the later period.
1 1. During the period of stock price consolidation, we should give up using RSI indicators and observe DMI indicators instead.
Whether ADX has come out of the quagmire.
12. If the VR and ROC indicators show that the stock price is strong in a strong market,
Potential, then give up using RSI indicators.