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BetHorses!
12-09-2013, 12:29 PM
Any chart guys use RSI only? Do you use 14 periods? My pop loves RSI just not sure if he is using it correctly.

This is from stockcharts which references uptrends and downtrends --> RSI Oversold in Uptrend: This scan reveals stocks that are in an uptrend with oversold RSI. First, stocks must be above their 200-day moving average to be in an overall uptrend. Second, RSI must cross below 30 to become oversold.

RSI Overbought in Downtrend: This scan reveals stocks that are in a downtrend with overbought RSI turning down. First, stocks must be below their 200-day moving average to be in an overall downtrend. Second, RSI must cross above 70 to become overbought.

Any tips on how to use?
Magister Ludi
12-09-2013, 12:59 PM
Any chart guys use RSI only? Most definitely not.

Any tips on how to use? RSI has been successfully used to signal oversold markets/buying opportunities. However, overbought RSI signals are virtually useless.
BetHorses!
12-09-2013, 01:09 PM
Any chart guys use RSI only? Most definitely not.

Any tips on how to use? RSI has been successfully used to signal oversold markets/buying opportunities. However, overbought RSI signals are virtually useless.


Thanks, what about oversold signals? My pop likes to solely look at RSI, so i'm trying to tell him exactly what to look for. Pretty much following the stockcharts definition but I myself have no experience with it.

(I gave him an index card w some rules written down but looking to add to it)
RaceBookJoe
12-09-2013, 02:31 PM
Think of stock indicators ( rsi,macd,stochs etc ) just as you would horse indicators ( beyer fig, pace fig, turn time fig etc ) . They can work independent at times, but usually there is more to the story. One thing about oversold/overbought is that stocks can stay overbought longer than you think, and USUALLY if the stock is "good", it wont stay oversold as long..thats not an ironclad rule, but something to keep in mind.
BetHorses!
12-10-2013, 09:24 AM
Think of stock indicators ( rsi,macd,stochs etc ) just as you would horse indicators ( beyer fig, pace fig, turn time fig etc ) . They can work independent at times, but usually there is more to the story. One thing about oversold/overbought is that stocks can stay overbought longer than you think, and USUALLY if the stock is "good", it wont stay oversold as long..thats not an ironclad rule, but something to keep in mind.


Thanks Joe....told my pop to use 80 and 20 instead of 70 and 30