Technical indicators are widely used in trading to determine market
direction over different time frames. One of the widely followed
technical indicators is the Relative Strength Index (RSI).
Here is a useful video from MarketGurukul.com that shows you how to use the RSI in identifying entry and exit levels in trading:
About
Ahead of the Curve provides analysis and insight into today's global financial markets. The latest news and views from global stock, bond, commodity, and FOREX markets are discussed. Rajveer Rawlin is a PhD and received his MBA in finance from the Cardiff Metropolitan University, Wales, UK. He is an avid market watcher, having followed capital markets in the US and India since 1993. His research interests include capital markets, banking, investment analysis, and portfolio management, and he has over 20 years of experience in the above areas, covering the US and Indian markets. He has several publications in the above areas. He currently teaches business and management students at CHRIST University. The views expressed here are his own and should not be construed as advice to buy or sell securities.
Featured post
Time Series Analysis with GRETL
This video shows key time-series analyses techniques such as ARIMA, Granger Causality, Co-integration, and VECM performed via GRETL. Key dia...

Tuesday, 27 September 2016
Indicator Watch - How to Use the RSI in Trading
Labels:
indicators,
rsi,
technical analysis,
trading,
trading strategy
I have over 27 years of experience tracking capital markets across the globe, I write about financial markets and teach MBA students financial markets and investing
Subscribe to:
Post Comments (Atom)
World Indices
Live World Indices are powered by Investing.com
Market Insight
-
-
Real Madrid Vs. Atletico Madrid Champions League Line Up: Four Changes - Real Madrid head coach Carlo Ancelotti will make four changes when his team faces crosstown foe Atletico Madrid in the Champions League last 16 on Tuesday.55 minutes ago
-
Critical Comparison: Worldline (OTCMKTS:WWLNF) and Shift4 Payments (NYSE:FOUR) - Worldline (OTCMKTS:WWLNF – Get Free Report) and Shift4 Payments (NYSE:FOUR – Get Free Report) are both mid-cap business services companies, but which is th...1 hour ago
-
The Clean Industrial Deal - The European Commission crafted a new strategy to funnel money into climate change initiatives—The Clean Industrial Deal (CID). The European Union has watc...2 hours ago
-
Nvidia-Backed CoreWeave Files For IPO Amid Explosive AI Growth, Revenue Surges 737% To $1.9 Billion - CoreWeave, Inc., a cloud computing firm backed by NVIDIA Corp., filed its Form S-1 with the U.S. Securities and Exchange Commission on Monday, signaling ...3 hours ago
-
Europe Will Go to War, Lose, and Euro Will Become Extinct | Martin Armstrong - It looks like every country in Europe is backing more war in Ukraine. And now, there is renewed talk of an EU army. Martin Armstrong says:"Why? Because the...3 hours ago
-
Does This Chart Show That The Recession They Have Been Planning Has Already Begun? - Have you noticed that now there is a lot of chatter about how “Trump’s policies” threaten to plunge the U.S. economy into a recession? The messaging tha...9 hours ago
-
Market Dashboard - Subscriber access. To subscribe please visit Market Services on NorthmanTrader.com. Whereas the Daily Market Brief goes into depth on macro and technical c...10 hours ago
-
S&P 500 PE Ratio - *Current S&P 500 PE Ratio:* 29.25 -0.54 (-1.81%) 4:00 PM EST, Mon Mar 310 hours ago
-
Monday links: liquidity constraints - February 2025 - The S&P 500 returned -1.30% in February 2025. (on.spdji.com) - How major asset classes performed in February 2025. (capitalspec...12 hours ago
-
If We Set Aside Ideology, Is There Anything We Can Agree On? - *Just the experiment of setting aside ideological certainties for a moment would be instructive. * *Humans are hard-wired to prefer simplicity over comple...13 hours ago
-
Crypto Rallies, Trade Wars and TSLA’s Road Ahead - It’s time to get on the fast track to stock profits — with the five things you need to make money this week … in just five minutes. The post Crypto Ralli...15 hours ago
-
Calculating price indexes using economic accounts : A guest post with perspectives from the Bureau of Economic Analysis - The Bureau of Economic Analysis (BEA) calculates price indexes that help all of us better understand changes in underlying economic activity, including inf...17 hours ago
-
My Bias Blind Spot Bubble - Since March Madness is nearly upon us, how about a fun basketball story? I was lucky enough to be a hoops fan during the golden age of basketball: La...18 hours ago
-
Debt Rattle March 3 2025 - Gustave Courbet The village maidens 1852 • Europe Unveils Rival Ukraine Peace Plan (ZH) • UK, France, Ukraine Agree To Work On Cease-Fire Plan To Prese...20 hours ago
-
An Uncertain Feeling - Weekly report covering Gold, Equities, Crude, Dollar. A look at trade opportunities and covering the model portfolio. The post An Uncertain Feeling appea...2 days ago
-
Arrested for DUI? Here’s What You Need to Know About the Process - If the police arrest you for DUI, you have legal options that can get you off the hook or at least reduce the legal ramifications of the situation.4 days ago
-
Data Update 8 for 2025: Debt, Taxes and Default - An Unholy Trifecta! - There is a reason that every religion inveighs against borrowing money, driven by a history of people and businesses, borrowing too much and then payin...1 week ago
-
MARKET CLOSURES ON PRESIDENT'S DAY IN THE USA - Please beware of reduced liquidity and special trading breaks for CFD's and Bullion on Monday 17th of February 2025 due to President's Day celebrations i...2 weeks ago
-
Bootcamp in New Jersey - North Brunswick (Feb 2025) - Price: Non-Members price $1000 (members price$750) (cancellation fee $200) - Date: February 28—March 2, 2025 ...1 month ago
-
Climate Change Profiteers Reveal The Democrat Party As A Satanic Death Cult Of Morons - By Barry Ferguson12/10/24The Democrat Party in the US has devolved into a satanic death cult of morons. They not only want to destroy themselves but the re...2 months ago
-
Mastering Support Levels: A Deep Dive into QQQ’s Technical Framework - The Nasdaq 100 ETF (QQQ) has reached new all-time highs, presenting traders with fresh opportunities. Understanding key support levels becomes crucial fo...3 months ago
-
Regency Silver (RSMX.V) – Stock Pick of the Month November 2024 - Our pick for this month is one that picks all of the criteria I like. Before I begin, let me talk about the company. Let me show you what I call my 5 ps of...3 months ago
-
Three Stocks: ServiceNow, IBM and UPS - United Parcel Service UPS (UPS) turned in a +5% performance today following the company’s earnings report. The shipping company showed strong results for...4 months ago
-
Can NVDA’s Share Buybacks and AI Innovation Drive the Next Rally? - NVIDIA Corporation (NVDA) has undoubtedly been one of the hottest large-cap stocks this year, surging over 150% year-to-date and more than 195% in the past...5 months ago
-
The Great Unwinding of Stock Listings - [image: total nyse and nasdaq issues traded] The drop in the number of publicly traded U.S. companies is continuing. I last reported on that here back i...5 months ago
-
Hello world! - Welcome to WordPress. This is your first post. Edit or delete it, then start writing!9 months ago
-
Weekend Update - Trendline rejection (3/8/24) - SPX was rejected by the blue trendline Friday. The trendline had been sucessfully tested four times and held since November, until now. SPX has unable ...11 months ago
-
Mungerisms: Timeless Wisdom from Charlie Munger on Life and Business - "Mungerisms" are succinct expressions of wisdom and insights coined by Charlie Munger, the Vice Chairman of Berkshire Hathaway and Warren Buffett's longtim...1 year ago
-
It’s Crunch Time for The Daily Doom and Doom Time for The Great Recession Blog - The Great Recession Blog is officially done for good, and my writing continues on TheDailyDoom.com. This site will eventually be completely terminated. If ...1 year ago
-
Innovative Industrial Properties Stock a Great Way to Play Pot Sector - *IIPR Stock Represents a Long-Term Opportunity* Marijuana stocks briefly attracted investors' attention following the 2022 mid-term elections, when Maryl...2 years ago
-
2008 analogue - The 2008 analogue tape looks very interesting from where we stand. Let's anchor it to the next two Fed meetings -- since that's all that matters -- and i...2 years ago
-
Back to trade with Bar Replay - It is often said that one should not be sad about the past, but sometimes it can be nice to return to it. Who would like to buy Tesla for $1 and experience...2 years ago
-
After This Holiday Rally, You Better Know When To Walk Away - This week’s investor insight will make you think twice about the current stock and bond rally as we head into the end of the year. We get a lot of questi...2 years ago
-
How Africa Can Escape Chronic Food Insecurity Amid Climate Change - The toll of extreme weather events on crops underscores the region’s challenges and need for policies to save lives and protect livelihoods.2 years ago
-
12 Bear Market Rules To Live By – Survive & Thrive In The Next Bear Market - 12 Bear Market Rules To Live By – Survive & Thrive In The Next Bear Market [image: Bear Market Rules Survival Guide] I grew up in the 1970s-1980s when th...2 years ago
-
Growth Companies – Getting What You Want - What do the growth companies in your field have in common? How are they doing so well and what can you learn from them? Growth companies usually make a pro...2 years ago
-
-
Blog Post Title - What goes into a blog post? Helpful, industry-specific content that: 1) gives readers a useful takeaway, and 2) shows you’re an industry expert. Use your c...3 years ago
-
Foot Locker Crushed Q2 Earnings Expectations Sending Stock Higher - Plus, AstraZeneca said its antibody therapy reduced the risk of developing COVID-19 symptoms by 77%, The Topps Co’s SPAC merger is off, and Elon Musk annou...3 years ago
-
Elliott Wave Stock Market Update - July 10th - The market has continued its rally to higher highs and it doesn't seem like it wants to stop. We now have a new ATH at 4371 which are NASDAQ levels s...3 years ago
-
The Psychology of QE is Far More Important Than the Amount of It - Let's discuss what QE really does vs the psychology of QE.3 years ago
-
Hello world! - Welcome to WordPress. This is your first post. Edit or delete it, then start writing!3 years ago
-
Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning November 09 - Indicator Weekly Level / Change Implication for S & P 500 Implication for Nifty* S & P 500 3509, 7.32% Bullish Bullish Nifty 12264, 5.34% Neutral ** Bullis...4 years ago
-
Fully Automated Trend Trading w/ Stocks Or Options - There’s a lot of research to support the usage of trend indicators as simple risk reduction elements that can be layered onto an existing strategy. Howev...4 years ago
-
2020 Top Investment Picks – Q3 Update - At the beginning of the year, I put together a list of Top Investment Picks for 2020 from the investment community and track them on this website. This is ...4 years ago
-
The last of 12326 - February 22nd 2012..... First post... https://permabeardoomster.blogspot.com/2012/02/can-anyone-fly-plane.html -- This post will be the last under the o...4 years ago
-
-
Ultramarathoner Runs Over 200 Miles in Backyard, Wins Golden Toilet Paper Roll - Strange times indeed. In the land “BC,” before coronavirus, people ran long distances in foot races, and toilet paper wasn’t coveted. Things have changed. ...4 years ago
-
March report "How Revolutions, Wars and Plagues are Harbingers of 'Great Changes' in Societies and in Economics" published. http://bit.ly/2y4LJZQ - March report "How Revolutions, Wars and Plagues are Harbingers of 'Great Changes' in Societies and in Economics" published.https://t.co/k29bzcK3DY — Marc ...5 years ago
-
Weekend Report - Weekend Report Provided by the OEW Group December 21, 2019 Last Monday started with a sharp rally on positive trade news. After closing at 3169 the previou...5 years ago
-
Financial Markets Will Move To Asia - Chicago, they invented the Soybean futures contracts. But now, China uses more soybeans than ... *READ THE REST OF THE ARTICLE ON THE NEW WEBSITE: JIM ROGE...5 years ago
-
GW Pharmaceuticals (GWPH) Signals Bearish Continuation To $100 -
GW Pharmaceuticals $GWPH has been retreating sharply, and might have further downside towards $100.
G...
5 years ago -
Meet Hert Capital and How He Uses Stocktwits - On Stocktwits, HertCapital has been known for quite some time. But for those reading who haven’t had a chance to follow him, we asked him a few questions...5 years ago
-
The Earnings Mirage: Why Corporate Profits are Overstated and What it Means for Investors - I just published a new long-form piece through OSAM Research Partners entitled “The Earnings Mirage: Why Corporate Profits are Overstated and What it Means...5 years ago
-
Nightly Algo Report – December 6, 2018 - To access this post, you must purchase Premium Plan or Premium Plan - Annual. The post Nightly Algo Report – December 6, 2018 appeared first on Elliottwa...6 years ago
-
Don’t be Fooled by the Pullback in the Dollar Because…. - Don’t be fooled by the pullback in the U.S. dollar today because the greenback could still strengthen further before the end of the year. Nearly all of the...6 years ago
-
Weekly Videos - This week’s video will be posted on the new home for Short Takes. If all goes well, it will appear sometime between 6:00 and 8:00 pm ET.7 years ago
-
Gold’s silent comeback and the middle class rebound - The middle class has been stuck in a rut – psychologically if not economically – for years, and they’re not afraid to admit it. Last year’s upset victory...7 years ago
-
Kafka For The Twenty First Century - I've been spending a slightly frustrating day trying to update my payment details at google. To log in to my admin console I need to log in using my G Sui...8 years ago
-
The Progressive Case for Abolishing the Corporate Income Tax - Reform of the corporate income tax is shaping up to be one of the big issues facing Congress in 2017. Republicans are pushing for big cuts in the corpora...8 years ago
-
Gold Unleashed by Fed - Gold's next major upleg was likely unleashed by a very-dovish FOMC this week, which now has its hands tied on hiking rates or being hawkish due to the US e...8 years ago
-
From false moves… - One of my favorite sayings came from my trader friend Brian Shannon, who said from false moves come fast moves. I always pay attention to […] The post Fr...11 years ago
-
Why Mitt Romney Will Be The Next President - News Flash: Despite how it may look, what with Occupy Wall Street protests and Tea Party rallies, the country’s populous is not as polarized as it might se...13 years ago
-
August 24th Blogger Sentiment Poll - There are more bulls than bears in this week's poll. Blogger Sentiment Poll Participants: 24/7 Wall St (N) Carl Futia (+) Dash of Insight (+) Elliot Wave L...15 years ago
My Favorite Books
- The Intelligent Investor
- Liars Poker
- One up on Wall Street
- Beating the Street
- Remniscience of a stock operator
Trading Ideas
Forex Insight
-
EUR/GBP holds positive ground above 0.8250 on Ukraine peace plan - Read more on https://www.fxstreet.com41 minutes ago
-
FX Watch: AUD/NZD and AUD/JPY Testing Support Areas Ahead of Australia’s GDP - The Australian dollar is already under a lot of downside pressure lately, so can the upcoming GDP release drag it any lower? Here’s what I’m watching on ...4 hours ago
-
Bitcoin’s (BTC/USD) Wild Ride – Open Interest, ETF Flows Amid Trump’s Crypto Remarks - Bitcoin’s (BTC/USD) price experienced significant volatility, dropping to $78k before rising to $95,000 due to Trump’s cryptocurrency reserve comments, the...6 hours ago
-
Upward Revision to Q2 GDP Aids the US Dollar’s Feeble Recovery - The second estimate of US GDP growth in Q2 saw an upward revision from 2.8% to 3%. However, US resilience has come under pressure, particularly in the labo...6 months ago
-
Don’t be Fooled by the Pullback in the Dollar Because…. - Don’t be fooled by the pullback in the U.S. dollar today because the greenback could still strengthen further before the end of the year. Nearly all of the...6 years ago
-
EUR/USD Weekly Outlook - EUR/USD's decline attempt was contained at 1.0494, above 1.0493 support and rebounded. Initial bias stays neutral this week first. On the upside, break of ...7 years ago
-
Loonie and Aussie Share Downward Bond - In yesterday’s post (Tide is Turning for the Aussie), I explained how a prevailing sense of uncertainty in the markets has manifested itself in the form of...13 years ago
Economic Calendar
India Market Insight
-
A Lesson in Faith: How One Boy’s Determination Changed Everything - Life has a way of teaching us lessons in the most unexpected ways. Sometimes, those lessons come not from seasoned experts or accomplished mentors, but f...3 days ago
-
Reduce Persistent Systems; target of Rs 3700: Emkay Global Financial - [image: Reduce Persistent Systems; target of Rs 3700: Emkay Global Financial] Emkay Global Financial recommended reduce rating on Persistent Systems with a...10 months ago
-
Rupee falls 29 paise to close at 82.68 against US dollar - During the day, the rupee touched a high of 82.45 and a low of 82.68 against the greenback. On Friday, the rupee had settled at 82.39 against the dollar.1 year ago
-
-
JUST NIFTY BLOG 10-01-2020 - Bulk Deals FII DII Stats Date # of Deals Total Volume (In Millions) 01-01-1970 0 0.00 Click here to see all Bulk Deals Date Category Buy Amount (Rs. Cror...5 years ago
-
Gold Top down analysis. - - Updating blog after a long Gap. Longest in the last 8 years. May not be able to update regularly for 2 more months to come. - Gold bulls co...6 years ago
-
Vist Note on Federal Bank - We recently met the senior management of Federal Bank which is one of the old private sector banks with a distribution network of 1252 branches (48% Kerala...6 years ago
-
Bank Nifty does Price Time Squaring and gave big move - As discussed in Last Analysis Bank Nifty gave the big move as we were expecting near turn date and also made low of 24706 near our target of 24700 and bo...7 years ago
-
Midcap & Smallcap Index Corrects, Lets Come Back To Fundamentals Again - Midcap Index had made a high of 18511 on 16th May 2017, fell almost 7% and is currently trading at 17230. Smallcap Index made all time high of 7679 on 11th...7 years ago
-
Market outlook for 28/10/2016 - *Nifty closed flat at 8615.25* while Future closed at 8655.25, premium of 40.00 points. *Bank Nifty closed up 31.00 points (0.16%) at 19514.60* while Futur...8 years ago
-
Option Open Interest for 27-10-2016 - Inference The index opened flat and went down to touch the lows at 8550, but support level buying saw the index close flat at 8615.25. The broader market w...8 years ago
-
NIFTY OUTLOOK FOR 22-8-16 - *Nifty (8667)* we said ‘it is quite possible that the Nifty may open again in the green but I would be cautious in the upper regions’ the Nifty opened in ...8 years ago
-
ITC To Resume Cigarette Manufacturing - ITC manufactures a range of cigarette brands, including India Kings, Classic, Gold Flake, Navy Cut, Capstan, Bristol, Flake, Silk Cut, which are manufactur...8 years ago
-
My Asset Allocation Strategy (Indian Market)
Cash - 40%
Bonds - 20%
Fixed deposit - 20%
Gold - 5%
Stocks - 10% ( Majority of this in dividend funds)
Other Asset Classes - 5%
My belief is that stocks are relatively overvalued compared to bonds and attractive buying opportunities can come along after 1-2 years. In a deflationary scenario no asset class does well other than U.S bonds, the U.S dollar and the Japanese yen, so better to be safe than sorry with high quality government bonds and fixed deposits. Cash is the king always. Of course this varies with the person's age.
Bonds - 20%
Fixed deposit - 20%
Gold - 5%
Stocks - 10% ( Majority of this in dividend funds)
Other Asset Classes - 5%
My belief is that stocks are relatively overvalued compared to bonds and attractive buying opportunities can come along after 1-2 years. In a deflationary scenario no asset class does well other than U.S bonds, the U.S dollar and the Japanese yen, so better to be safe than sorry with high quality government bonds and fixed deposits. Cash is the king always. Of course this varies with the person's age.
No comments:
Post a Comment