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449 lessons · 1492 terms · 29 calculators

12 results for “RSI

Lessons

Glossary

  • RSI
    Technical analysis

    Measures how one-sided recent moves have been. Overbought means strong, not doomed.

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  • Overbought
    Technical analysis

    The most misunderstood word in trading. In a strong trend RSI can stay above 70 for months.

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  • Oversold
    Technical analysis

    It describes momentum, not value. In a strong downtrend an oscillator can print oversold all the way down, and bounces top out near 55–60 rather than 70.

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  • Range shift
    Technical analysis

    In a strong uptrend pullbacks bottom near 40–50, not 30. Waiting for the textbook oversold reading in a trending stock means never buying at all.

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  • Money Flow Index
    Technical analysis

    RSI with the money attached. Where RSI asks whether it went up, this asks whether anyone paid for it to.

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  • Indicator redundancy
    Technical analysis

    RSI, Stochastic, Williams %R, CCI and the MACD histogram all agreeing is one opinion reported five times. New information has to come from a different input — volume, breadth, relative strength.

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  • Stochastic
    Technical analysis

    It asks a different question from RSI — where you finished, not how one-sided the moves were. In a trend it pins at an extreme for weeks, so it belongs in ranges only.

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