Part Two: How do I use the RSI to trade?
Post your learning results by taping the discussion: How does RSI tell whether your stock is overbought or oversold?
Hi mooers! ![]()
Have you used the RSI to help you decide whether to buy or sell a stock? If you have, you may find the RSI doesn't work sometimes. ![]()
Even if it falls below 30, it doesn't go up at all. Instead, the price keeps falling.
Therefore, it's better to adopt the RSI indicator with other indicators to filter out stocks. Let's see what the options are. ![]()
RSI+MACD
When RSI falls below 30, you should consider checking the MACD. If the MACD is in the downtrend, you shouldn't rush to buy it. A better practice may be to wait until the golden cross appears, and the RSI falls below 30 again.
RSI+Bollinger Bands
If the RSI falls below 30, you should check the support level of the stock with the BB indicator. If the price drops out of the BB lower band, you may consider waiting for the right timing to buy the dip. In contrast, if the price reaches the upper band but doesn't break out, and the RSI goes above 70, you may consider selling the stock to control the risks.
Post your learning results by taping the discussion: How does RSI tell whether your stock is overbought or oversold?
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Milk The Cow :
BullRunner : Over bought in in the 70ish range which would be bearish and oversold in the 30’s would be bullish.
CraCra665 : I've been watchin a lot of vids on channels that Bring this into play. it's actually pretty easy to read. but you like everyone can't predict the market. so it may help a Lil but you never know where the bottom or the top is gonna be. you can make a guess. just like anyone. nothing is guaranteed. because you will be gone one day.
70132051 : Eric over at traveling trading showed me this too
102510936 : RSI macd bolinger bands with EMA along with volumes and chart trends should do
RoadTo1M : do you have RSI compare between stock and s&p500
neat Moose_7341 CraCra665: Why the last part tho
Danny Milner : I’m glad you elaborated on the first portion of your RSI post. This should be of benefit to many.
FirstStrike Veteran : I stopped using rsi months ago. I use Ema and I also use supply and demand boxes. it's more of a if this happens then that happens and it's been working very well
CraCra665 neat Moose_7341: lol.
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