Overbought and oversold RSI

Assalam alaikum dear forum members!

• umeed karta hun aap sb khairiat se hn gy or apki trading bahut achi jaa rahi ho ge.
• dear 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.

What is Relative Strength Index?

• 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.

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 it?

• 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 ha.

How to trade it?

• 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: Overbought and oversold RSI

RSI, or Relative Strength Index, is a technical indicator used by traders to measure the strength and momentum of a financial asset's price. RSI is calculated based on the average gain and average loss of the asset's price over a set period of time, usually 14 days.
When the RSI of an asset reaches a certain level, traders often interpret it as either overbought or oversold. Overbought means that the asset's price has risen too much too quickly, and a pullback or correction is likely. Oversold means that the asset's price has fallen too much too quickly, and a rebound or recovery is likely.
The traditional threshold for overbought is an RSI of 70 or higher, while the threshold for oversold is an RSI of 30 or lower. However, some traders use different thresholds based on their own experience and the specific market conditions they are trading in.
It's important to note that while overbought and oversold levels can be useful indicators, they should not be used in isolation. Traders should also consider other technical indicators and fundamental analysis, as well as their own risk tolerance and trading strategy.