RSI Simplified

Its one of the leading indicator which measures the strength of any move in price
Its an oscillator which moves between two extremes (0—100)
Reading above 70 indicates overbought while below 30 indicates oversold sentiments

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#StockMarket #Technicals

RSI Simplified

How to trade with #RSI
50—70 is as zone where trades buy the #stocks by considering other factors (BO, Divergences)
Below 40 is weakness zone where some traders do selling
40-50 is an indecision zone where most of the traders avoid trading & wait for BO

RSI Simplified

Trading Divergences
There are 2 type of divergences occurs b/w RSI&Price (Bullish & Bearish)
In Bullish Divergence RSI makes HH-HL while price doesn't do it
In Bearish Divergence RDI makes LH-LL while price doesn't do it

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#StockMarket #Technicals

RSI Simplified

Trading Checklist for RSI
Buy on bullish or positive divergences
Sell on Bearish or negative divergences
Wait if divergence is very low in nature
Remember more the divergence better the success rate of trade

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#StockMarket #Technicals

RSI Simplified

Case Study
We can see RSI bearish or negative divergence in the pic
RSI cont. making LL-LH pattern while price is making HH-HL pattern (Selling or Profit Booking zone)
It is often considered as fake move as well in ST charts

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