Hello,
Here i will be talking about the process for picking up the stocks based upon the Relative Strength. As this is known to everyone but only few are getting benefitted by applying it in real trading. Most of the gains are made with the stocks having greater RSI. If RSI having > 75 those are the ones which create maximum wealth in Short time. Now, Question...
In this post, i discuss a simple way of when to start paying attention to a particular sector or a stock, with the example of IT sector
1) At point 1, as nifty is forming a bottom, IT is attempting to form a bottom as well, moving along with the index
2) As nifty continues to move higher, it forms a higher low at point 2, whereas IT has a big gap down and...
RSI - Relative Strength Index Indicator:
The Relative Strength Index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a...
When near, intermediate & far period relative strengths get into sync just like moving averages, it shows maximum trend strength.
lets say ... near rs crosses 0... 1pt
interm also crosses 0... 2pts
far also crosses 0... 3pts
i use 10 21 55 time periodes which are selected as they will be in sync with my Rsi indicator settings of 10 21 rsi crossover.
Disclaimer:...
INDY/EEM relative strength chart is reaching its all time high since the introduction of INDY ETF in Nov' 2009.
Background info: INDY is the Nifty 50 ETF trading on NASDAQ which mimics the Nifty 50 index.
EEM is the MSCI Emerging Markets ETF which invests funds in emerging markets such as China, India, Hong Kong, South Korea, South-east Asia etc.
INDY has been...
This is a quick guide into using relative strength charts (or RS charts) that will help you pick stocks that are stronger than the broad market or identify sectors/industries that might outperform the broadmarket.
