Operation Strategy RSI s real significance Money Tips

Category: Money tips Release Date: 2006-09-06

RSI values are 0 to 100, this value can be represented in one of the strengths of both long-short. Example, when the RSI = 50, indicating that long-short two sides are equal strength, assuming that the two sides are 50, when the RSI = 80 hours, indicating that the number of multi-party 80, the short side of the number 20. Obviously, when RSI = 100 hours, it demonstrates that all people are multi-person, and the stock market also boiling over. Can also get RSI = 20 and 0, significance.

Let's analyze this by comparing the number of examples to explain the real meaning of RSI.

If a stock, the present price is 10 yuan, while promising to see more people than bad people, that is willing to buy than those who are willing to sell for a long time, the stock will rise up. Then, the stock rose to 11 yuan on the results, or promising to see more people than bad people, the stock is still up. For example, a stock rose to 10 yuan from 50 yuan, RSI is also close to 100, and also that all people are optimistic about when the time comes, will people start to think about selling. Why? Because the hands of people who hold a lot of chips, he would think: If you are not popular enough to start when the ship started to decline if, in the hands of so many chips, you can not be distributed out. Therefore, even if all of them think that the stock will rise higher in those who think that among some people have begun to sell stocks. Even though he knew that the stock will rise, but in order to make the hands of a large number of stocks can be profitable honored, he must not risen to the top before starting to sell, otherwise his profits into the foam, come to naught. As a result, many of the stock is expected to be risen to 50, especially the hands of too many chips, he may be 45 million or lower price, they begin to sell the stocks. From this perspective, certainly a lot of people are still bullish, the ready to ship or have shipped.

So, when RSI = 100 indicates that all of the people are optimistic about this stock, more latent shipped with a major crisis, like balloons, eat the biggest, the bursting of the crisis also arose. Once down, it all optimistic about the stock, it will produce "Fei Liu Mashimo 3000 feet, down suspected Galaxy nine days," the landscape. Because of the experience of many times the stock market has made the vast majority of people understand this truth Even if investors do not understand the rationale behind this and how many will be eaten too late to sell the bug. Therefore, when a callback at a high level when the stock has been profitable people will hurry to sell, making a profit off the bag for security, high recovery into the no profit, as long as mind some rolling but also hastened to flesh out, go first to Fast.

From another point of view, when everyone optimistic about a stock, that is, RSI is close to 100, this stock price is often far greater than the actual value of the stock. In that case, what we usually say overbought phenomenon. The so-called overbought situation that should not be bought buy people who buy stocks. Therefore, in the ultra-bought, once dropped, because this stock really does not worth the price, fell is not surprising.

RSI = 100 describes the situation, come talk about RSI = 80 or close to a high of 80 the situation is easier to understand.

As mentioned earlier, when the RSI = 100, it was started before shipped. Well, this before when? If the RSI just from the point of view, as a shareholders, since we know RSI = 100 will be too late to sell, I currently do RSI = 95 when it began to sell it? This can, of course. If, however, most of all summed up this experience, are RSI = 95 hours, then who will buy it? Fewer people are buying, then you can guarantee that your shares will be able to sell when the RSI = 95 do? Therefore, it was just the beginning when RSI = 90 sold. As such, people will start to sell more and more in advance, which is a general book often speak of RSI = 80, they were prepared to sell the truth. On the contrary truth, RSI = 20, we also prepared a good time to buy.

Said that the above reasoning, and then come back to show the real meaning of RSI, it is easy to master RSI in different values of the different stocks.

There are two stocks is a big difference. On large capitalization stocks and small-cap stocks. The use of RSI stock trading, you can not use the same values. For the large-cap stocks, when you sell, RSI = 80 should be shipped, the super dish too large-cap stocks, it is difficult to achieve for 80% of the people are optimistic. And the number of people holding more people missing, along with a banker chips and more difficult to ship, to be shipped in advance, that is, large-cap stocks in general do not appear very high RSI situation. On the contrary, small-cap stocks is different, generally in the RSI = 80 hours, it is a good time to purchase shows that the dealer has collected enough chips, plates less, RSI's value higher, mainly a bargaining chip to be controlled, down to pressure, it is difficult to stop making behavior.

All in all, RSI can clearly tell you were optimistic and look at the number of bad comparison. As this ratio, then the disk for each stock and the different circumstances, its meaning is different. Water can carry a boat can also capsize. The specific use of the resourcefulness of the.