review of "relevancy b/w commodity channel index & relative strength index"

AOA

Jesa kay hamy pata hai kay forex trading ma bhot sary indicator use hoty hain. Relative strength index or commodity channel index one of the famous indicators ma sy ik hain. Es topic ma jaha ham enko explain karyn gy waha par ham enki relativity ko bi discuss karyn gy.



Relevancy b/w Relative strength index & commodity channel index.

Relative strength index or commodity channel index two famous oscillators hain jo extreme price behaviour ki placement kay laye different methods sy use hoty hain. Relative strength index hamy market ki three states kay bary ma batata hai kay either market over bought hai
Second ye kay market over sold hai or third ye kay ye phr neutral hai state ma hai. Jb kay commodity channel index deviation par focus karta hai jis sy choti trades open kar saktyn hain. Ye long term trading ma use ni hota kiu kay es ki applicability bhot kam hai.



Defination of Relative Strength Index.

Secondly relative strength index lagging indicator hai jo past price ko use kartyn hoye market kay future level ko indicate karta hai. Jb reletive strength index ki value 0 to 30 hoti hai to es ka meaning hota hai kay market over sold ho gaye hai or trader yaha buy ki trade sy faida hasil kar saktyn hain. Similary jb rsi 70 to 100 ki range ma hoti hai to eska meaning ye hota hai kay market over bought ho chuka hai or trader sell ki trade start kar kay benefit hasil kar saktyn hain. Thirdly jb reletive strength index ki value 30 to 70 hoti hai to ye indicate karti hai kay market neutral hai or trader ko es time market sy door rehna chahe.



Defination of Commodity Channel Index.

Commodity channel index equities or currencies both ma popular or famous hai. Commodity channel index indicator formula commodity ki typical price ko eski moving average sy compare karta hai or phr enko takseem karta hai typical price ki deviation sy. High positive signal agr hasil ho to eska matlab hai kay commodity ya pair trading es kay previous trend sy strong hoti hai or low reading signal ka meaning weak trading hota hai. RSI ki tarha CCI ki kio range ni hai jo esko read karny ma or bi mushkil bana deti hai. RSI or CCI both bearish or bullish divergence ko signal dey sakty hain.

Conclusion.

RSI or CCI ma kio relevance ni hai. But RSI ko bhot si markets ma most reliable tool kay tor par jana jata hai. Or bhot sary trader eskay simple hony ki waja sy esko like karty hain.

Re: Review of "Relevancy b/w Commodity Channel Index & Relative Strength Index"

yes friend, forrx main trading kartay huay hmain kafi indicators available hotay hain jin ki base par market ki moment ko smjha ja sakta hay, in ko combinely bhi use kia jata hay,

Commodity Channel Index vs relative strength Index:



CCI ko momentum oscillator bhi kaha ja sakta hay jis ka matlab ye hota hay kay ye pairs ki overbought aur oversold areas ko janchta hay, CCI main aik fundamental consideration ye ki jati hay kay pairs cycles main move kartay hain, jis main highs aur lows periodic intervals main atay jatay hain, CCI zero kay above aur below fluctuate karta hay, jab prices apni average sa above hoti hain to CCI bhi high hota hay aur jab prices apni average kay low hoti hain to CCI ki value bhi low hoti hay, Relative Strength Index aik momentum indicator hay jis ko J. Welles Wilder junior na introduce karaya, ye technical anaylisis main recent price changes kay magnitude ko measure karta hay aur pairs ki prices main overbought aur oversold conditions ko janchta hay, ye traders ko bullish aur bearish price momentum kay signal bhi provide karta hay, ye indicator market kay trend reversal aur pull backs ko bhi identify karta hay,

Working principle of CCI:




indicator ki percentage values +100 aur -100 kay darmian rehti hain, jo total periods kay numbers kay mutabik up down hoti hay, is tarah CCI in values ki base par hi buy aur sell signals generate karta hay, jab iski values +100 sa above move karti hain to prices kay strong uptrend main enter honay ki indication milti jo buy ka signal hay, +100 sa back moment par ye position close ho jati hay, isi tarah jab CCI ki value -100 sa below hoti hay to ye prices kay strong downtrend main janay ki indication hoti hay aur ye sell ka signal hota hay,

Features of RSI:



aik oscillator ki tarah display hota hay jo 0 aur 100 kay darmian readings show karta hay, jab is ki value 70 ya is sa above hoti hay to ye pairs ki prices kay overbought honay ko zahir karta hay, isi tarah jab RSI ki value 30 sa below hoti hay to ye oversold ki indication daita hay, in hi values sa bullish aur bearish trends ki confirmation bhi hasil hoti hay, 0 aur 100 kay kareeb RSI ki value strong uptrend ya downtrend ko show karti hay, is main divergence aur failure swings ko daikhtay huay bhi signals generate kiay ja saktay hain,