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TA Challenge: How does RSI tell whether a stock is overbought or oversold?
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Milk The Cow joined discussion · May 2, 2022 13:07

TA Challenge: How to use RSI to tell whether a stock is overbought or oversold?🤨

RSI stands for relative strength index. With RSI, you can better evaluate whether a stock is in the overbought/oversold zone.

This time round, not going into the math & who the h3ll is the inventor . U just need to know how to use it, that's all . It's so simple to use with all the calculations already done by the Moomoo app.

Firstly, u may wanna check out @Meta Moo posts to know more about RSI (not gonna to go into chim <profound> details but to move straight into some example ):
Meta Moo :Another powerful indicator for your successful trading

How to use RSI to see if a stock is overbought or oversold?
As shown in the picture 📸 below :
TA Challenge: How to use RSI to tell whether a stock is overbought or oversold?🤨
Having that said, it does not really mean that it has to be 70 & 30 respectively as some more aggressive traders may be using 80 & 20 instead .


In addition, it can be used together with some other indicators like :
TA Challenge: How to use RSI to tell whether a stock is overbought or oversold?🤨
OK, those votes 🗳 may be a little low in quantity... (because I'm an early bird 🐦 to participate events) but u get the idea 💡 lar .

Let use $SPDR S&P 500 ETF (SPY.US)$ as an example .
TA Challenge: How to use RSI to tell whether a stock is overbought or oversold?🤨
RSI = About 35 = oversold?
Of course not yet + .

MACD = show downtrend.
The graph 📊 too .

So, in my opinion... it may continue to go even lower with all the negativity of the stock market .

There u have it . So simple to use right ✅
?

DYODD before investing
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Milk The Cow
DYODD before investing 👌
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