Explain of Relative strength index (RSI) indicator...

INTRODUCTION:

ASSLAM O ALIKUM !
umeed karta hun aap sb khairiat se hn gy or apki trading bahut achi jaa rahi ho ge.members aj ki post main hum Relative Strength Index indicator k oversold or overbought levels ko dscs karen gy k ye kia hoty hain or inko kesy trade kia jay. dear members laikin agr apko nahi pata k relative strength index kia ha to phly hum esko shortly study kar lyty hain.

Relative strength index RSI :

Dear members Relative strength index aik momentum indicator ha jo k oscillator ki shakal main hota ha or market main trend ki strength k bary main btata ha.basically es main 3 levels ka istmal kia jata ha highest level 80-100 ka hota ha jb k lowest level 0-20 ka hota ha. or es main aik neutral level hota ha 50 ka.



How to Overbought RSI :

Dear members jb Relative strength index ki value 80 ya us se opr hn to esko overbought RSI kaha jata ha kr es time market ka uptrend peak py hota ha js ki waja se expect kia jata ha k ab market reverse ho ge or trend change ho ga.

How to trade Overbought RSI:

Dear members jb RSI overbought ka signal dy to apko market ko bhi analyse karna ha or dkhna ha k market main ko resistance ha ya nahia. agr market resistance level py ho to yahan se hum sell ki trade le skty hain.es main hmara stop loss resistance se opr ho ga jb k hum es trade ko RSI oversold hony tk hold kar skty hain.

Oversold RSI :

Dear members jb RSI 20 ya us se nechy ho to RSI oversold khlata ha or es time market downtrend main kafi nechy jaa chuki hoti ha or market main trend reversal expect kia jata hy.

How to trade Oversold RSI :

Dear members jb RSI oversold ho to hamen market k price action ko dkhna ha k market ksi support py stand kar rahi ha ya es k nechy koe support ha jahan se market reject ho. agr aisi ko rejection ki confirmation ho to hum yahan se buy kar skty hain. es main hmara stop loss support se nechy ho ga jb k hum es trade ko RSI overbought hony tk hold kar skty hain..

Re: Explain of Relative strength index (RSI) indicator...

Relative Strength Index (RSI):



Relative Strength Index (RSI) indicator ko J. Welles Wilder ne design kia ha jo k basically aik oscillator hai. RSI indicator kisi khas value ki technical strength ya weakness ko malom karne k leye istemal kia jata hai. RSI (Relative Strength Index) aik technical movement indicator k tawar par bhi kaam karta hai, jab over-bought ya over-sold soratehal me kisi security ki haleya (recent) profit ko us ki haleya nuqsan k sath muwazena (compare) karane ki koshash karta hai.
RSI indicator ko trader ya analyst k trading, pasand ya analysis k mutabiq kisi bhi timeframe me tarjeehi base par kisi bhi dino k number me calculate kia ja sakta hai. RSI indicator me sab se ziada istemal hone wala aur jo by-default setting bhi hai wo 14-days ka simple moving a verage hai. Baaz short term traders apne analysis k leye 5-day, 7-day aur 9-day ka RSI bhi istemal karte hen. RSI indicator ka istemal karne wale traders ko is baat ka ilam zaror hona chaheye k jab bhi market me qeematen bohut ziada upward ya downward ati hai to us waqat qeematen is indicator ko mutasir karti hai, jis se ye indicator false buy ya sell k signals genrate karta hai. RSI k natayej ko behtar banane k leye is ko dosre bare stock indicators k sath istemal kia ja sakta hai.
RSI oscillator k tawar par qeematon ki raftaar (momentum) ko follow karne k leye design kia gaya hai, jis ki range 0 se 100 k darmeyan hoti hai. RSI indicator me divergence ka istemal kia jata hai.
RSI indicator chaar (four) qisam k trading signal deta hai; divergences, charting patterns, RSI levels aur overbought / oversold.

(i) Divergences


Bullish Divergences Give Buy Signals

Bullish divergence us waqat hota hai, jab qeematen aik neye (new) nechli level tak ger (fall) jati hai lekin RSI apni pechli kami k muqablay me kam nechay level par ata hai.

Trading ka osool:

Jaise hi RSI apne dosre low position se uper ata hai, to yahan pe buy ki entry karen aur latest low price k nechay stop loss laga den.

Bearish Divergences Give Sell Signals:

Bearish divergence us waqat hota hai, jab qeematen aik new up position pe chali jati hai lekin RSI indicator apne pechle high k muqabele me kam upward jata hai.

Trading ka Osool:

Jaise hi RSI dosre high position se low ata hai, to yahan pe sell ki entry karen, latest high price k uper stop loss ki position set karen.

(ii) Charting Pattern:

Jab RSI indicator apne down trend line ko break karta hai, to uper ki qeemat ki trend line se uper buy ki entry karen, takeh aik upward breakout ko pakra ja sake.
Jab RSI indicator apne uptrend line ko break karta hai, to nechay ki qeemat ki trend line se nechay sell ka order put karen, isi tarah se downward breakdown ko pakra ja sakta hai.


(iii) RSI Levels :

Jab bhi RSI indicator apne lower reference line se nechay chali jati hai aur baad me wapis bullish move karna shoro ho jaye, to yahan pe buy ki entry karen.
Jab bhi RSI apne upper reference line se above chali aur baad me wapis nechay a jaye to yahan pe sell ki trade open karen.


(iv) Overbought / Oversold:

Wese to RSI indicator me traders ya analyst apni marzi k mutabiq levels ki setting kar sakta hai, lekin is me jo by-default setting howe hen wo hai, 30 se 70 k darmeyan. RSI k 30 se below area ko overbought zone jab k 70 se above area ko oversold zone kaha jata hai.
Aam tawar par agar RSI 25 pe gerne k baad 30 se uper barhta hai, to is ko bullish reversal ya bullish trend tasawar kia jayega.
Is k bar-aks agar RSI 80-90 pe jane k baad 70 level se nechay a jata hai to ye humen bearish reversal ya bearish trend k bare me batata hai.

Kuch traders market ki qeematon k pehle long term ki trend malom karne k baad hi entry karte hen. RSI ka istemal dosre indicator k sath karna ziada faida mand sabit ho sakta hai.