U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Investing
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 06-19-2014, 06:28 PM
 
1,137 posts, read 757,914 times
Reputation: 689

Advertisements

DO you rely on the RSI value as one indicator of when to buy or sell?

So you should buy when it's oversold? Or what other indicators do you look at?
Reply With Quote Quick reply to this message

 
Old 06-19-2014, 06:58 PM
 
2,563 posts, read 2,790,486 times
Reputation: 3479
There are all sorts of financial indicators that you can look at in terms of making short-term trades or long-term trades or whatever. I wouldn't hang my hat on any one indicator. Look at them all. Also, look at the company fundamentals.
Reply With Quote Quick reply to this message
 
Old 06-19-2014, 07:07 PM
 
1,137 posts, read 757,914 times
Reputation: 689
Yeah, I do look at other stuff too. Like P/E, latest news about the stock, and the technical indicator analysis of this website:

Markets : Stock Quote Beginner View: Stock technical analysis for RHT including trend analysis, candlestick patterns and various technical indicators including MACD, RSI, Stochastics and more
Reply With Quote Quick reply to this message
 
Old 06-20-2014, 12:08 AM
 
Location: US
17,925 posts, read 17,832,738 times
Reputation: 13933
I only look at 20/50/200 moving averages, stochastics and volume.
Reply With Quote Quick reply to this message
 
Old 06-20-2014, 06:15 AM
 
Location: Wartrace,TN
5,549 posts, read 8,892,941 times
Reputation: 11060
Stocks can stay overbought and oversold for a long time. Technical indicators lag the market and should be used as decision support tools. What you should be looking for are divergences between indicators and price.

Relative Strength Index (RSI) - ChartSchool - StockCharts.com

Your trading time frame is a factor in using technical analysis. If you are a longer term investor or even swing trader technical analysis will work a lot better than if you are day trading/scalping the markets. the shorter the time frame the more you need to concentrate on price action and order flow.

The "Holy Grail" of trading doesn't exist. People spend decades trying out hundreds of indicators looking for the perfect system that leads to the golden brick road. Finding a simple system that works for you better than 50% of the time and has a positive expectancy along with good trade management is about the best you can hope for.
Reply With Quote Quick reply to this message
 
Old 06-20-2014, 11:03 AM
 
166 posts, read 136,632 times
Reputation: 74
Quote:
Originally Posted by JTE1969 View Post
DO you rely on the RSI value as one indicator of when to buy or sell?

So you should buy when it's oversold? Or what other indicators do you look at?
With RSI you do not buy when it drops below 30 - you buy when it advances above 30 after being below it. In other words, you buy wen it starts to recover from oversold condition.

respectfully, you sell when RSI drops below 70 after being above it - when it starts to decline from the overbought levels.

You have to understand that overbought security does not necessary mean that you will see reversal. You may have overbought signals and your stock may continue to climb up. You sell when you have overbought signals and you see that your stocks starts to decline from this overbought condition. The opposite is true for buying from an oversold condition. You may read more about RSI here
About Relative Strength Index

The problem is to find RSI setting that would generate correct signals for your stocks. Each stock moves with different volatility and on different volume. Furthermore different indicator's setting could be recommended. Plus,you have to understand that 30 and 70% lines may not always be the best choice. many traders use 50% level as well. I may recommend checking RSI scanner that will show you the RSI setting for particular hat had the best performance in the most recent past.
RSI Trading System (2 Signal Lines) scan results)
You may browse the past scans for free.
Reply With Quote Quick reply to this message
 
Old 06-23-2014, 11:31 PM
 
Location: Corona the I.E.
10,077 posts, read 14,019,795 times
Reputation: 8918
Quote:
Originally Posted by bmw335xi View Post
I only look at 20/50/200 moving averages, stochastics and volume.
Stochs and RSI work in range bound market which is what we have, and they are pretty much the same, the others work better IMO in a directional market.
Reply With Quote Quick reply to this message
 
Old 06-24-2014, 11:32 AM
 
4,363 posts, read 3,237,850 times
Reputation: 7379
RSI is good for scalping. Lots of scalpers use it as one of their main indicators.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Investing
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top