What is RSI indicator

What is RSI indicator

Assalam alaikum dear forum members! subha bakhair! Umeed karta hun aap sb khair khairiat se hn gy or apka trading week bahut acha jaa raha ho ga. dear members trading karty hovy aksr hum indicators use karty hain jo k trading main helpful hoty hain or in main se aik relative strength index ha jsko aj hum tafseel se study karen gy.

What is relative strength index?

Dear members relative strength index aik momentum indicator ha jo k hamen market k trend or eski strength k bary main btata ha. esko shortly RSI kaha jata ha. Or es main 3 levels hoty hain jo k market main trend ki strength ko indicate karty hain. Aik level 80-100 ka hota ha jo k bullish trend ki peak hota ha. Dosra level 0-20 ka hota ha jo k bearish trend ki peak hota ha. or in dono k darmyan 50 ka level hota ha jo k neutral level smjha jata ha.

Jb market buy trend main ho or RSI 50 se opr ho to ye strong bullish trend ki nishani hota ha. or jb market downtrend main ho or RSI 50 se nechy ho to ye strong bearish trend ki nishani hota ha. es k ilawa RSI hamen sell or buy k signals bhi deta ha.

Overbought RSI:

Dear members jb market uptrend main kafi opr ja chUki ho Or RSI 80 ya es se opr ki values show kar raha ho to esko overbought kaha jata ha or es k bad market main reversal expect kia jata ha k buyers ab market se exit hn gy or sellers in hn gy. es wqt hm market main price action se confirmation k bad sell ki trade le skty hain.

Oversold RSI:

Dear members jb market downtrend main kafi nechy ja chuki ho or RSI 20 ya es se km values show kar raha ho to esko oversold RSI kaha jata ha or es k bad market main trend reversal expect kia hata ha or sellers ki strength km hoti ha markey main buyers in hoty hain. es time py hum price action se confirmation k bad buy ki trade le skty hain. RSI divergence:Dear members divergence us situation ko khty hain jb price action or RSI ki direction different ho jy. for example RSI higher lows or higher highs bnay jb k market lower lows or lower highs bnay esko divergence kaha jata ha or ye bhi market main trend reversel ki bishani hoti ha. Eski 2 types hoti hain. Bullish Divergence Bearish Divergence Bullish divergence k bad market buy main jati ha. jb k bearish divergence k bad market sell main jati ha.

THANK YOU GUYS !

Relative Strength Index RSI relative strength index aik technical indicator hey jes ko RSI ka naam deya ja sakta hey aap ko forex market mein 2 technical tools ko bhe shamel karna chihay yahan par forex market mein price movement ka analysis karnay kay ley estamal keya jata hey forex market mein kese assert ke recently pemaish karnay key ley estamal keya ja sakta hy takeh forex market mein overbought ya oversold kay halat ka tayon keya ja sakay RSI ko aik momentum oscillator ka naam deya jata hey jo keh forex market 0 or 100 kay darmean mein otar charhao ke pemaish karta hey aap es cheez ko indicate karen keh forex market mein mid line 50 es indicator mein yeh line trader cut off kay tor par bhe estamal karen gay ager RSI oper ke taraf barah raha hey to trader es ko bullish pattern kay tor par bhe estamal karen gay ager RSI 50 say nechay movement kar raha hey to trader es ko bearish kay tor par indicate karen gay ager RSI 70 say oper movement kar raha hey to yeh pattern overbought ho ga ager RSI 30 say nechay move kar raha trader es ko oversold level kay tor par identify kar saken gay nechay de gay tasweer ko bhe daikh saktay hein Calculation Relative Strength Index

RSI= 100 - [100/[1+average Upward price change/average downward price change

RSI grade price movement ko identifiy karnay kay ley estamal keya ja sakta hey or price ke movement ko darja day ga jes mein X trader kay zarey say estamal keya janay walla input ka estamal keya ja sakta hey RSI aam tor par 14 kay sath estamal keya jata hey price mein tabdele ko RSI register keya ja sakta hey market ke strength ko indicate krnay kay ley sabqa movement ko identify keya ja sakta hey strategy with RSI indicator nechay de gay 2 tasweer RSI ka estamal karnay ke basic tasweer ko paish karte hein jes say oversold or overbought level ko identify keya ja sakta hey jes kay tahat mumkana trading point ke entry le ja sakte hey 1 overbought signal USD/ZAR ka chart deya geya hey jo keh forex market mein 70 ke level say oper overbought signal ko identify karta hey jo mumkana entry points ko identify keya ja sakta hey 2 oversold signal GBP/USD ka chart deya geya hey jo keh 30 ke level say nechay oversold signal ko identify karta hey jo forex market mein mumkna long entry kay chance ko identify karta hey Conclusion RSI nesbatan forex market ke strength ke pemaish karta hey es ko oscillator ka aik anmool tool banata hey jesay strategy kay tor par kese bhe market mein estamal keya ja sakta hey RSI ko estamal karnay kay tareekay hotay hein RSI mein overbought oversold level forex market mein entry signal ko identify kartay heinyeh forex market ke strategy mein movement karnay ke ejazat daytay hein technical trader ko lazme RSI ko shamel karna chihay takeh ache tarah say trade say faida hasell keya ja sakay