RSI was first used in futures trading. Later, people found that it is also good to use this index to guide stock market investment, and constantly summarized and summarized the characteristics of this index. Today, RSI has become one of the most widely used technical indicators for investors. According to the general principle of investment, investors' buying and selling behavior is a reflection of the comprehensive results of various factors, and the change of the market ultimately depends on the relationship between supply and demand. According to the principle of supply and demand balance, RSI index evaluates the strength of bulls and bears by measuring the percentage of total stock price increase in a certain period, and then puts forward specific operational suggestions. On the surface, the application rules of RSI are complicated, including the intersection, value, form and deviation of judgment principles.

What does rsi deviation mean?

The deviation from the bottom of rsi indicates that the new low of stock price is lower than the other, while the new low of rsi indicator is higher than the other. When the bottom deviation of rsi appears in the stock price chart, it means that the stock price has bottomed out, which is a signal to buy. At this time, investors can buy on dips and wait for the stock price to rebound.