relative strength index;

Assalam alaikum dear members!Umeed ha ap sb thk hn gy. Jesa k ap janty hain hum ny forex indicators ki 1 series start ki thi jis main hum MACD or Moving average cover kr chuky thy or aj agy barhty hovy hum Relative Strength Index ko discuss karen gy.

What is relative strength index??

Dear members relative stregth index 1 momentum indicator ha jo k technical analysis main bhi istmal hota ha.ye halia price changes ka magnitude measure kar k overbought or oversold situation k bary main btata ha.
RSI dikhny main 1 oscillator ki trha hota ha jo k 2 extreme lines k darmyab ghomta ha jo k 0 or 100 ki ho skti hain ya phr ap apni mrzi k levels bhi laga skty hain.
Traditionally ye kaha jata ha k agr RSI ki line 70 ki value se opr ha to market ko overbought smjha jata ha or reversal ki expectation ki jati ha esi tarha agr 30 ki line se nechy ha RSI to market ko oversold expect kia jata ha or expect kia jata ha k market reverse ho ge.



RSI overbought;

RSI overbought us situation ko kaha jata ha jb market kafi opr jaa chuki ho or buyers apna control lose kr rhy hn or es wqt RSI ki value 80 ya us se oprr hoti ha.
es wqt RSI apko ye indicate karta ha k ab market girny wali ha lehaza mazeed buy ki trade ko hold na krn or new trade buy main na ln.
Q k es level se market ka reversal expected hota ha.

Oversold RSI;

Dear members RSI oversold us situation ko kaha jata ha jb market kafi nechy gir chuki ho or RSI ki values 20 ya us se nechy hn to us wqt RSI ye indicate karta ha k market kafi nechy ja chuki ha ab market opr aygi ya to retracement lygi ya phr trend reverse ho ga lehaza ab sell ki trades hold na kare.
or new order sell main na len.

How to Take trade on RSI??

Dear members agr ap RSI ko use karty hovy trade karna chahty hain to apko RSI k sth sth proce action bhi seekhna ho ga or us or bhi dehan dena ho ga.
jesy hi apko RSI overbought ya oversold ka signal dy to apko sth sth price action mtlb k rejection ki confirmation kr k sth sth support or resistanve dkh k trade leni chahye.
agr ap srf RSI py rely karen gy to apki trades loss main bhi ja skti hain Q k for example RSI overbought ka signal deta ha or ap sell ki trade lety hain
to possible ga k market thori bht retracement le k wps opr chli jy.

Re: Relative strength index;

Relative Strength Index (RSI)

RSI indicator kisi khas value ki technical strength ya weakness ko malom karne k leye istemal kia jata hai. Relative Strength Index (RSI) indicator ko J. Welles Wilder ne design kia hai jo k basically aik oscillator hai. RSI 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 muqabele 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

1. 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.
2. 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

1. 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.
2. 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.