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Rsi_oversold

What Is the RSI Indicator & RSI DivergenceRSI - 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 reading from 0 to 100. It is important to note that the RSI does not indicate whether a stock is a buy or a sell; rather, it provides insight into the current trend of the stock. The RSI is a versatile indicator that can be used by traders of all levels and can be adapted for any style of trading. For example, a trader may use the RSI to identify support or resistance levels, or to spot divergences that can be used to predict future price movements. The RSI can also be used to locate potential trading opportunities by looking for overbought or oversold conditions. Furthermore, the RSI can be used in combination with other indicators, such as moving averages, to gain a better understanding of the market’s overall trend. Formula of RSI: The RSI is calculated using a formula that compares the magnitude of recent gains against recent losses over a specified period. The formula for the RSI is: RSI = 100 - (100 / (1 + (Average of Upward Price Movements / Average of Downward Price Movements))) What is periods in RSI: Periods in RSI (Relative Strength Index) are the number of time periods used to calculate the RSI. The most commonly used period for RSI is 14, but other periods such as 7, 9, and 25 are also used. This number represents the number of time periods that are used to calculate the RSI, so a period of 14 would mean the RSI is being calculated using the last 14 time periods. RSI divergence: RSI divergences are a type of technical analysis used to identify potential trend reversals in the markets. They are based on the Relative Strength Index (RSI) and are used to spot potential trend reversals before they occur. A divergence occurs when the price of an asset makes a higher high, but the RSI makes a lower high. This suggests that the current rally is losing momentum and may reverse course. Similarly, a lower low in the price and a higher low in the RSI may signal an impending rally. Divergences are best used in conjunction with other technical indicators and analysis to confirm price action. It is also important to keep in mind that divergences do not always lead to reversals and may simply signal a period of consolidation before the price continues its current trend. Divergence Cheat Sheet / Types of Divergence:
Education
by AfnanTAjuddin
1
Multi Timeframe Analysis on ACCELYA The chart above says it all. Daily TF Analysis :- If you look at daily TF you will find this stock made a high of 1530-1540 last year, then it fell down. This year in November 2nd week it broke out that level and right now it is retesting that previous resistance level. From price action point of view this is a good entry point. Hourly TF Analysis :- in hourly time frame a good support can be seen forming, right now the RSI is also at 23 (Highly Oversold). 15 Minute TF Analysis :- in M15 the RSI value is at 21, indicating oversold condition in this timeframe also. Conclusion :- this stock can be a good candidate for swing as well as positional trading. For swing trade Entry would be - 1530, SL - 1480, Target - 1670 (Risk : Reward = 1 : 2.8). Disclaimer - Do your own research before taking any Trades.
NSE:ACCELYALong
by iChoco
A Very Low risk setup in SKFINDIAHello everyone! Now is the best time to go long in SKFINDIA. I have been tracking this stock since July'22 and it has given a fabulous one sided rally of 35% since then, it is going through consolidation from last 2 month(pl. go through chart for probable target and SL). Someone might consider it after breakout from trendline but I personally prefer a low risk setup even with slightly less probability as after breakout the probability will increase but the risk to reward will be not as good as now. Let us understand this through example: Consider 2 setups, one with low RR and high wining % and another setup with considerably less winning % and high RR. RR ratio Wining % 1st Setup 1:3 90% 2nd Setup 1:6 60% Now before doing calculation let us pre-assume a few things; Total Capital - ₹1000 Maximum risk he/she take per trade - ₹20 After 10 trades: For 1st Setup; 1 trade will hit SL since setup has 90% accuracy. so, total loss = ₹20 As the setup have RR of 1:3 So, target for each trade will be = ₹20x3 = ₹60 In 9 trades target will be achieved. So, total gain = ₹60x9 = ₹540 Similarly for 2nd Setup: No of losing trade = 4 Total loss = ₹20x4 = ₹80 Target for each trade = ₹20x6 = ₹120 No of winning trades = 6 Total gain = ₹120x6 = ₹720 Total loss Total gain Net Gain ROI 1st Setup ₹20 ₹540 ₹520 52% 2nd Setup ₹80 ₹720 ₹640 64% Now you may make your decision. Thanks!
NSE:SKFINDIALong
by sudhanshu_raaz
Inverted Cup and handle Pattern : DJITechnically, Dow is really at a critical zone. Keeping in mind that Equity is a growing asset, today's DJ:DJI session would be very Important. DJI has given a close below its neckline and completed its Pattern. There are concerns of recession as well. Will the DJ:DJI fall and complete its target or there will be pattern failure? Here ADX is showing above 24, indicating that markets are about to trend. Rsi indicates the oversold condition in the market. * It is just my analysis and no recommendation of Buy or Sell is Given.
DJ:DJIShort
by VanshikaUdeshi
1
HONAUT- Tweezer Bottom at Strong Support LevelsFollowing Chart is of Honeywell Automation which Clearly shows Tweezer Bottom at the Support Level of @39130 The trend must get reversed with Targets anywhere around @48000 to @50000 if the Strong Resistance Level is Broken @45000 The RSI is just reversing from the Oversold Region which hints a nice time to buy. All in all you will end up with a sweet 11% profit in short term even if you book the profits @45000 Risk averse traders might wait for another day to confirm. Do follow for more trading setups like these Thanks, if you have any queries/suggestions related to above pattern, feel free to type below in the comment section.
NSE:HONAUTLong
by Gajanan_Y
TCS: Has it bottomed out? Is it on the verge of bottoming out? Greetings ! (1) Price and strength of rally: Today, TCS though has declined , strength of decline has weakened. This is demonstrated in the net change in closing price. Previous close was at 1658. Today, closing price is 1654. (2) RSI: Let us sift price drops and corresponding RSI at the bottoming out. Historically, TCS has witnessed much higher RSI at bottom out than now. Thus, price in the context of RSI appears in an oversold zone. (3) Delivery volume% (available on NSE) has remained steady at 60+ %. This implies 60 out of 100 traders have chosen to become investors, take deliveries. Today's delivery % is on the higher side compared to 10 days average delivery % (4) Traded volume is also on the higher side (5) Option series for 26th March expiry reveals that the maximum change in Put OI at 1500PE & 1600PE. Option premiums have declined. 6 days to expiry are left. So time decay or Theta will progressively overpower. Therefore decline in premium will be sharper. However, this is only possible when the underlying price goes. Today, there are no significant Put unwinding.
NSE:TCSLong
by datepuru
Taking support a very important level. Price action positiveThe stock has made healthy retracement and have now it’s resting on the Kumo. Today’s price action was quite convincing to re-establish the buyers into the stock. The RSI is taking support on the bullish extreme levels with MACD curling up indicating momentum is picking up. If ONCG gets overall support from Nifty, the stock is expected to pull up strongly from these levels the short term targets may be set at 149-154 zones. 125 levels are important support levels for the stock.
NSE:ONGCLong
by BharatJhunjhunwala