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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less.....

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To: Barney who wrote (1947)7/28/1998 6:35:00 PM
From: TATRADER  Read Replies (2) of 59879
 
RSI is the Relative Strength Index...It measures the internal strength of a single security...When it moves over 80, it means the stock is overbought, and one usually waits until it inches back under 80 for a sell signal....Or if it moves below 20, it means the stock is oversold, and you wait for an upturn above 20 to generate a buy signal..Further, you compare the price charts with the RS charts to see if there are divergences with price...A RS down and a price up is bearish, an RS up and price down is bullish...Further, you study the RS chart and compare peaks and valleys with price to determine if the stock has hits its bottom or could be reaching its top..I often use RS to help me gage a bottom on a stock...The RS is not making lower lows as the price is making lower lows..Shows strength to downside not as strong... Regards, mark
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