#PowerofRS
Entry or Exit
All Sorted

More from Learner Vivek Bajaj

This thread will give you access to all our FREE initiatives till date.

1. https://t.co/bPnddzO9NR is India's largest repository of interviews conducted by me, of real market participants.

2. https://t.co/QvERyyhWaE has A2Z of learning related to Trading.

1/n

3.
https://t.co/f4yiFFxQ2p for learning basics of Options Trading

4. https://t.co/u56DYdqQAC for comprehensive text modules on Finance in simple school level language

5. https://t.co/dKr2tfcKI1 for practical value added learnings

2/n

6. @mystockedge , simple and effective research tool for serious market participants who want to do-it-on-their-own

7. https://t.co/PgELBirufd for useful market insights.

And more coming soon.

3/n

We have done fair bit of work in democratising financial education and financial data plus analytics in India by making them affordable and effective. Our Free initiatives are powerful and extremely value adding for:

Beginners
Traders
Investors

4/n

N/n

Premium offerings are meant for next level workings. You should checkout all the advance work we are doing in both @elearnmarkets and @mystockedge to make sure that your financial market journey takes the right path of wealth creation.

Follow both the handles for details.

More from Screeners

#RSI is a common indicator which most of us use in the stock market.

This learning thread would be on
"๐™๐™จ๐™š๐™จ ๐™ค๐™› ๐™๐™Ž๐™„"

Like๐Ÿ‘ & Retweet๐Ÿ”„ for wider reach and for more such learning thread in the future.

Also, an investment strategy is shared using RSI in the end.

1/16

Setup 1:

RSI- commonly used to show whether price is overbought or oversold.

General rule:
๐‘๐’๐ˆ > ๐Ÿ•๐ŸŽ -- ๐Ž๐ฏ๐ž๐ซ๐›๐จ๐ฎ๐ ๐ก๐ญ
๐‘๐’๐ˆ < ๐Ÿ‘๐ŸŽ -- ๐Ž๐ฏ๐ž๐ซ๐ฌ๐จ๐ฅ๐

One becomes cautious once price becomes overbought and optimistic when price becomes oversold.

2/16

Let's understand this with an example of Laurus Labs:

1. It was in overbought zone and after a few days when a small dip was seen from 693 to 588 (15% downside)

2. It was in oversold zone and after a few days when a small rally was seen from 59 to 107 (82% upside)

3/16


Well, this looks very easy, but it is not.

When a price is in overbought zone and is in momentum, then it can move up without taking a dip and exiting or shorting stock would prove wrong.

When IRCTC was in overbought zone, price went up from 2718 to 6396 (135% rally).

4/16


Similarly, for oversold stock.

When a price is in oversold zone and is crashing, then it can move down without taking an upmove and buying stock would prove wrong.

When DHFL was in oversold zone, price went down from 126 to 11 (91% crash).

5/16

You May Also Like