USE RSI FOR PREDICTING THE STOCKS

RSI(Relative Strengh Index) shows the relative strengh of the stock. generally preferable parametres for the RSI is 20,80 as mention in the below graph of the RELIANCE CAPITAL.

Where If, the RSI chart touches or crosses the level of 20 one can buy the stock as described by GREENcoloured circles and can sell it when the RSI chart touches or passes or nearer to 80 as described by RED coloured circles.

Its very easy to use the RSI chart but it is very practical and useful method of predicting the stock.

                                                        

       HARI OM..........