RSI, the relative strength index, is a technical curve made according to the ratio of the sum of the rising and falling ranges in a certain period, which is used to measure the relationship between supply and demand and the buying and selling power of the market and reflect the prosperity of the market in a certain period. RSI was first used in futures trading. Later, it was found that using this index to guide stock market investment was also very effective, and the characteristics of this index were constantly summarized and summarized.
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. RSI index is based on the principle of supply and demand balance, which measures the percentage of the total increase of stock price to the average of the total change of stock price in a certain period to evaluate the strength of long and short forces, and then prompts specific operations.
As for this stock, how to use the rsi indicator? Usually there are two RSI lines, a short period line and a long period line in the market software. Looking at the picture, we can understand that when the white short-term RSI line is below 20 and crosses the yellow long-term RSI line from bottom to top, it is a buy signal; When the white short-term RSI line is above 80 and crosses the yellow long-term RSI line from top to bottom, it is a sell signal.
In addition, if the short-term RSI value exceeds 50 from top to bottom, it means that the stock price has turned from strong to weak, so be careful that your position cost is too high; If the short-term RSI value exceeds 50 from bottom to top, it means that the stock price has turned from weak to strong, and low-cost opening opportunities have begun to appear.