Category: Money Tips Date: 2006-09-05
Relative Strength Index RSI indicator is a period of time by comparing the average closing up closing down a number and the average number of market orders to analyze the intent and capability to analyze future market trend.
This article highlights the RSI indicator at the bottom to choose exactly the success of the role of individual stocks, that is, RSI indicator of "bottom Shenzhen" effect. "Bottom Shenzhen" RSI indicators for the specific application steps are as follows:
One, you need to RSI indicator of N parameters are set to 7, 14, 21.
2, when the stock price movement over a significant adjustment, the closely observed dip, Shenzhen "RSI" indicator bottomed out signals required on the 7th day RSI must be less than 10:14 indicators RSI must be less than 20-21 RSI indicators must less than 30.
3, when the RSI indicator to achieve these standards, if the stock price continue to fall, while the RSI indicator signals a noticeable decline stopped, and with stock price movements deviate from, you need to focus on.
4, if the RSI indicator appears on the 7th line to wear on the 14th line and 14 line 21 line to wear the gold cross *, and the RSI showing a long three-wire arrangement that RSI indicator has been completed buying tips role of the signal.
5, observe the volume changes. When the RSI indicator comply with the above technical requirements, investors need to observe the trading volume trends. For the volume of observation, there are two: one is when the RSI technical characteristics of the above-mentioned, the volume of observation is shrinking, and even occur in a level. If the transaction scarce, this indicates that the unit is nearing completion bottom, investors may be actively involved.
Another quantity that can be observed is that when the Unit to complete bottom, investors and timely intervention, you need to observe a substantial increment of the unit can occur in heavy volume of funds involved in the process of, if not an effective contribution, is illustrated in the bottom of the current is still is the stage at the bottom, investors need to deal with short-term rally. If the stock bottom is successful, the amount of amplification can be effective and continuous manner, then the investors can be regarded as an important individual stocks at the bottom, and firmly holding.
For example: Shanxi Coking (600.74 thousand quotes, information, advice, more). August 25, RSI indicators have reached extremely oversold standards, 7, RSI is 6.41 lower than the standard 10, 14, RSI17.77 less than 20-21 RSI26.63 also less than 30. Shares closed that day is 8.90 yuan. Thereafter, the unit, although still continue to fall, but clearly deviated from the RSI indicator and the uplink, September 10 RSI indicators showing three-line payments *, stock prices close at 8.98. Although the stock was slowly dropped to the minimum 8.72 yuan, but the RSI indicator tenacious up and maintain long arrangement, announced the success of Shanxi Coking bottom. Unit sudden heavy volume up by the end of October, stock prices rose rapidly to a maximum early in December rose to 13.71 yuan, Shanxi Coking. Month period, or up to 50% or more.
