We know that in a market, if there is no more incremental funds, the buyer's power will be exhausted. The following is a detailed explanation of the skills of using rsi indicators compiled by Bian Xiao, hoping to help everyone.
Detailed explanation of using skills of rsi indicators
Relative strength index: RSI(RelativeStrengthIndex) strength index was first used in futures trading. Later, in many charts and technical analysis, it was found that the theory and practice of intensity index were extremely suitable for short-term investment in the stock market, so it was used to measure and analyze the stock rise and fall.
Relative strength index RSI 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 indicator is a kind of technical analysis, and you can combine it with others, such as macd.
Passivation of RSI index
Like the KDJ indicator, RSI is ineffective: the indicator becomes dull and ineffective after the spot price continues to be high, and the same is true when the spot price continues to be low. Passivation is a common problem of this indicator. To solve the passivation problem, you can also refer to the previous technical teaching content, so I won't go into details.
Deviation of RSI index
The stock price is getting lower and lower, but the opposite RSI indicator is just the opposite of the stock price. When the stock price is higher and higher, it is the bottom deviation, and the stock price is easy to form a reverse upward trend. However, when the trend of RSI indicators is getting lower and lower, it is easy to reverse and form a downward trend.
RSI index principle
Our RSI is a technical index based on the strength of buyers and sellers. With the increase of various forces, RSI will inevitably decline after rising to a high point, and the empty power will increase, and RSI will inevitably rise and rebound after falling to a low point. RSI is based on this principle to help investors find relative highs and lows.
RSI, also known as relative strength index, was first used in futures trading. Later, in many charts and technical analysis, it was found that the theory and practice of intensity index were extremely suitable for short-term investment in the stock market, so it was used to measure and analyze the stock rise and fall.
RSI index principle
The principle of RSI is simply to calculate the strength of buyers and sellers through numerical calculation. For example, 100 people face a commodity. If more than 50 people want to buy it and compete to raise the price, the price of the commodity will inevitably rise. On the contrary, if more than 50 people compete to sell, the price will naturally fall.
According to the strength index theory, any price rises or falls between 0- 100. According to the normal distribution, it is considered that RSI values are mostly between 30 and 70, and usually more than 80 is considered overbought, so the short-term price will fall back. When the value falls below 20, it is considered oversold and the stock price will rebound in the short term.
How to analyze the market trend with rsi index
The accuracy and credibility of RSI are very good. If it is combined with other technical analysis methods such as moving average, it can improve the accuracy of judging the general trend of stock market and the changing direction of individual stock prices, and become a familiar analysis method for many short-term investors.
By analyzing the strength indicators, we can judge the trend of the stock price. RSI is limited between 0 and 100, that is, 0.
For example, a stock continues to rise, the stock price rises from 30 yuan to 40 yuan, and the strong index reaches 85, indicating that the stock has been overbought; If the share price rises again, it will soon fall back, because the buyer's motivation is weakened. On the other hand, if a stock continues to fall, the stock price falls from 20 yuan to 10 yuan, and the strength index falls to 15, indicating that it has oversold; If the stock price falls again, it may rise again because the seller becomes weaker and the buyer becomes stronger.