oversold and overbought position with rsi technical indicator

Overbought and Oversold Position

Relative Strength Index (RSI) aesa momentum indicator hai jo recent market price ky magnitude ko measure kerta hai aur hamain overbought ya oversold condition ko show kerta hai American technical analyst J. Welles Wilder Jr ny apni aik book main yeh concept introduce kerwaya ky RSI indicator two extreme ranges ky darmian movement kerti hai jis ki range 0-100 ho sakti hai overbought position aesy time per hoti hai jab RSI ki reading 70% sy downtrend main kafi nechy chali jati hai aur oversold jab RSI ki reading uptrend main 30% sy uper chali jati hai jab RSI main reading 70 sy above chali jati hai tou yeh overbought ko show kerti hai aur jab RSI ki reading 30 sy below chali jati hai tou yeh indicate kerti hai ky market oversold ho chuki hai jab market RSI main 70 ya 30 ko cross ker jaey tou wahan sy trend reversal expected hoti hai aur same time per market main reversal trend per trade open ki jati hai



Overbought and Oversold Levels

Jab RSI 30 ky horizontal level sy above movement kerti hai tou yeh uptrend ko indicate kerti hai jabky market jab RSI main 70 ky horizontal reference level sy below move kerna shoru kerti hai tou yeh downtrend ko indicate kerti hai jabky kuch assets main volatility fast aur maximum hoti hai jahan per overbout aur oversold level 20-80 tak chala jata hai agar market same level per ponch chuki ho tou wahan per kuch time period ky liay stay kerti hai tou phir reverse direction main movement kerna shoru ho jati hai lekin same level jab create hota hai tab trade open kerny main jaldi nehi kerni chahiay kyun ky market same direction main movement kerty huey level 00 ya 100 tak bhi movement ker sakti hai



Market Movement above 30 and below 70 levels

Jab market RSI main 30 reference level sy above movement kerna shoru kerti hai tou same movement kafi slow hoti hai aur jab 70 ky reference level sy downward movement kerna shoru kerti hai tab bhi aesa hi hota hai ky market slowly movement kerti hai jabky agar 30 ya 70 ky levels ko cross kerti hai tou same time per market ki movement bahot fast ho jati hai aur aesy time per market main big movement bhi ho sakti hai lekin jab 30 sy upward aur 70 sy downward movement shoru hoti hai tou wahan per movement slow hoti hai lekin trend aik hi direction main continue rehta hai



Recommendations for Successful Trading

Jab market oversold ya overbought position main chali jati hai tou usky reversal ki expectations bahot zyada hoti hai lekin aesa kabhi bhi nehi hota ky ham same indicator ko follow kerty huey bahot bara risk ly lain jab bhi trdae open kerain achi calculation ky sath kerain ky agar market hamari favor main movement nehi kerti tou hamain bara loss na ho jisky liay hamesha risk kam sy kam lena chahiay ky hamain apni open trade main stop loss her surat use kerna chahiay warna market agar continue hamari open trade ky against movement kerti rehti hai tou continue loss ki waja sy hamara account wash ho sakta hai agat stop loss set ho tou hamain just limited loss hota hai lekin take profit agar hit hota hai tou hamain required target tak profit hasil ho jata hai

Re: Oversold and Overbought Position with RSI Technical Indicator

Relative Strength Index (RSI) Indicator

Forex Trading market me RSI yani Relative Strength Index indicator aik mayari indicator hai. RSI indicator ka istemal sab se asan aur sab se ziada kia jata hai. Forex trading market me RSI indicator ki reliability ziada hone ki waja se taqreeban sare plateforme is ko support bhi karti hai aur is ko as a default istemal bhi karti hai.
RSI indicator pe pemayesh k leye 0 se lekar 100 tak k points hote hen, jis ko normaly 0,30,50,70 aur 100 k digits se show kia jata hai. RSI indicator me value aik line graph k shakal pemayesh k hisab se harkat karti rehti hai. Jis se humen us currency jore k trend k bullish ya bearish harkat ka pata chalta hai. RSI indicator me do position bohut aham hen, aik ko over-bought aur dosre ko over-sold kaha jata hai.

RSI = 100 – [100 / ( 1 + (Average of Upward Price Change / Average of Downward Price Change ) ) ]

RSI Indicator Over-Sold

RSI indicator ki value 30 aur 70 k darmeyan normal tasawar ki jati hai, lekin agar market ki value 30 se nechay jati hai to is ko over-sold kaha jata hai. Kuch platform pe ye value 20 aur 80 k darmeyan deya jata hai. Jab k 50 ka area ziada tar neutral hi tasawar kia jata hai.
Bearish trend ya down-trend me, RSI indicator 10 aur 60 k darmeyan rehta hai, jab k 50 aur 60 ka zone resistance k tawar par kaam karta hai.
Traders ko chaheye k jab bhi RSI indicator me value 30 se below yani over-sold zone me a jaye to trade ko buy kare. Q k is position pe ziada chances hote hen, k market yahan se wapis jayega.

RSI Indicator Over-Bought

Agar RSI indicator me value 70 se oper chali jaye to ye over-bought kehlata hai. Kuch platform me ye level 80 ka hota hai. Bullish trend ya up-trend me, RSI indicator 40 se 90 k darmeyan rehta hai, jab k 40 se 50 ka zone support k tawar par kaam karta hai.
RSI indicator k over-bought position pe trading k leye zarori hai k indicator me value 70 se oper ho, q k is position pe trend k reversal k chances ziada hai aur traders ko sell k trades lagane chaheye.