Need technical experts answers

Dear Techs, Since i am not sound on TAs, i have some questions to get an clear answer, i hope these questions & your answers will be fruitful to others also,

1. What is the RSI as at today ?
2. What is the limit or range for over bought & over sold ?
3. I saw there are some posts saying now market is over bought, if so,
----how much RSI should be reduced to come for over sold ?
----What are the factors effect to RSI ?
----If sellers absorbed by buyers when market green, what will happen to the RSI ?
----Do RSI show over bought in such occasions ?

4. what was the RSI when market hit 7800 ?
5. what is the importance of ASI croosing moving average ?
6. what are the data we need to check the RSI ?

I have posedt many fundamental analysis here according to my knowledge & ability, so i hope you will give answers to my questions without ignoring
specially TAH,small,sls,ukboy,stockmate, I very much appreciate your answers. others also.

thank you,
opfdo

opfdo wrote:Dear Techs, Since i am not sound on TAs, i have some questions to get an clear answer, i hope these questions & your answers will be fruitful to others also,

1. What is the RSI as at today ?
2. What is the limit or range for over bought & over sold ?
3. I saw there are some posts saying now market is over bought, if so,
----how much RSI should be reduced to come for over sold ?
----What are the factors effect to RSI ?
----If sellers absorbed by buyers when market green, what will happen to the RSI ?
----Do RSI show over bought in such occasions ?

4. what was the RSI when market hit 7800 ?
5. what is the importance of ASI croosing moving average ?
6. what are the data we need to check the RSI ?

I have posedt many fundamental analysis here according to my knowledge & ability, so i hope you will give answers to my questions without ignoring
specially TAH,small,sls,ukboy,stockmate, I very much appreciate your answers. others also.

thank you,
opfdo

Hi opfdo

Here is the chart which might help you with the answers.....

[img][/img]

thank you very much TAH, QT 1 is ok. but others, i am grateful to you, if you can explain the chart.

traderathome wrote:

opfdo wrote:Dear Techs, Since i am not sound on TAs, i have some questions to get an clear answer, i hope these questions & your answers will be fruitful to others also,

1. What is the RSI as at today ?
2. What is the limit or range for over bought & over sold ?
3. I saw there are some posts saying now market is over bought, if so,
----how much RSI should be reduced to come for over sold ?
----What are the factors effect to RSI ?
----If sellers absorbed by buyers when market green, what will happen to the RSI ?
----Do RSI show over bought in such occasions ?

4. what was the RSI when market hit 7800 ?
5. what is the importance of ASI croosing moving average ?
6. what are the data we need to check the RSI ?

I have posedt many fundamental analysis here according to my knowledge & ability, so i hope you will give answers to my questions without ignoring
specially TAH,small,sls,ukboy,stockmate, I very much appreciate your answers. others also.

thank you,
opfdo

Hi opfdo

Here is the chart which might help you with the answers.....

[img][/img]

opfdo wrote:thank you very much TAH, QT 1 is ok. but others, i am grateful to you, if you can explain the chart.

traderathome wrote:

opfdo wrote:Dear Techs, Since i am not sound on TAs, i have some questions to get an clear answer, i hope these questions & your answers will be fruitful to others also,

1. What is the RSI as at today ?
2. What is the limit or range for over bought & over sold ?
3. I saw there are some posts saying now market is over bought, if so,
----how much RSI should be reduced to come for over sold ?
----What are the factors effect to RSI ?
----If sellers absorbed by buyers when market green, what will happen to the RSI ?
----Do RSI show over bought in such occasions ?

4. what was the RSI when market hit 7800 ?
5. what is the importance of ASI croosing moving average ?
6. what are the data we need to check the RSI ?

I have posedt many fundamental analysis here according to my knowledge & ability, so i hope you will give answers to my questions without ignoring
specially TAH,small,sls,ukboy,stockmate, I very much appreciate your answers. others also.

thank you,
opfdo

Hi opfdo

Here is the chart which might help you with the answers.....

[img][/img]

Yes TAH, if that is fantastic FBR

Thanks bro..Hat is off for your contribution to this forum....

Todays RSI - is 81.74
This depends...people tend to use 20 or 30 for oversold and 70 for overbought respectively....some tend to go with 20 for early entry or 60 depending on individual trade system/plan
RSI was in the 90ish when ASI was 7800+
Traders tend to use 2 or 3 MAs to enter trades or exit on the crossing as they tend to indicate a beginning or end of trend.

But these technicals come with some disadvantages as well.....so they are known as lagging indicators...on choppy market ...

Also they tend to RE-PAINT,meaning you may see it as crossing above 20 RSI or 30 and you may BUY assuming its oversold, but later to find it has not crossed.....

So one should not totally rely onindicators alone....

TAH

I had to delete my post because TAH has posted an answer.

Here's RSI explained: http://www.investopedia.com/terms/r/rsi.asp

IMHO, ASI is highly sensitive to a couple of shares and that makes it pretty vulnerable. And by the same argument, RSI too. But I'm not an expert....

Cheers!

opfdo wrote:Dear Techs, Since i am not sound on TAs, i have some questions to get an clear answer, i hope these questions & your answers will be fruitful to others also,

1. What is the RSI as at today ?
2. What is the limit or range for over bought & over sold ?
3. I saw there are some posts saying now market is over bought, if so,
----how much RSI should be reduced to come for over sold ?
----What are the factors effect to RSI ?
----If sellers absorbed by buyers when market green, what will happen to the RSI ?
----Do RSI show over bought in such occasions ?

4. what was the RSI when market hit 7800 ?
5. what is the importance of ASI croosing moving average ?
6. what are the data we need to check the RSI ?

I have posedt many fundamental analysis here according to my knowledge & ability, so i hope you will give answers to my questions without ignoring
specially TAH,small,sls,ukboy,stockmate, I very much appreciate your answers. others also.

thank you,
opfdo

Thank you very much opfdo for posting this kind, and great thanks for TAH< anbuis for their explanations

thank you TAH & anubas & others. smallville/sls/stockmate, if can add, it will be a great for us.

how about qt no 3 point 3 ??

@opfdo: here's a much detailed explanation: http://www.aaii.com/computerizedinvesting/article/the-relative-strength-index-rsi

Only thing to note here is that it's a purely (100%) technical indicator.

As you can see, if a share experiences more and more high-days (meaning the closing price is higher than the opening price), then the RSI will increase.

TBH, I don't know why people are so concerned about this RSI thing, especially if they believe that the market was "hugely undervalued"... because if that was the case, then high RSI values are to be expected during the following bull run... because the correction will be swift... leading to higher RSI values.

Still, I'm not an expert, so my understanding might not be 100% correct.

Also watch: http://www.investopedia.com/video/play/relative-strength-index-rsi/

Cheers!

how much RSI should be reduced to come for over sold ?
When the RSI dips below 30, its said to have entered an oversold teritory.

What are the factors effect to RSI ?
Big surges and drops in stocks will affect the RSI, resulting in false buy or sell signals.

If sellers absorbed by buyers when market green, what will happen to the RSI ?
When the selling pressure above a price level has been absorbed, it makes sense to buy the share above the resisitance line.
RSI in this case may form higher highs while the stock records lower lows.

Do RSI show over bought in such occasions ?
Sometime it may.. It actually depends on where RSI was prior to the trend.
Use ADX in this scenario to measure the strength of the trend, RSI may be well over 70 but if ADX is climbing it may further
indicate a trending market.. IF +DI line of ADX above the -DI line it indicates an uptrend.

Divergences are a key point to note on any indicator;

Divergences occur between a technical indicator (i.e. RSI) and the security’s price when the direction of the indicator does not confirm the price trend.

bearish divergence — the stock records higher highs while the RSI forms lower lows

bullish divergence — the stock records lower lows while the RSI forms higher highs

RSI - Which period to take?
Standerd use is 14day RSI. The shorter number of days used, the more volatile the RSI is and the more often it will hit extremes.
Different sectors and industries have varying threshold levels when it come s to the RSI. Stocks in some sectors will above 75-80 before dropping back and others can have a tough time breaking 70 even.

Back testing is a good rule in this scenario. Check the stock you want the RSI value to be measured and observe it over a long term (1 year or more) to determine what level the historical RSI has traded at and how the stock reacted when it reached those levels.

TAH and Smallville

Thank you very much for your explanation, we are learning day by day..

Thanks TAH and Smallville
However these are only for trading correct? What if I am a long term investor and just buy undervalued shares and not interested in the rapid increase or decrease in price. Eg. some are saying that the market will come down again and asking everyone to be careful, does this relate to investors as well?

THANK YOU.

smallville wrote:how much RSI should be reduced to come for over sold ?
When the RSI dips below 30, its said to have entered an oversold teritory.

What are the factors effect to RSI ?
Big surges and drops in stocks will affect the RSI, resulting in false buy or sell signals.

If sellers absorbed by buyers when market green, what will happen to the RSI ?
When the selling pressure above a price level has been absorbed, it makes sense to buy the share above the resisitance line.
RSI in this case may form higher highs while the stock records lower lows.

Do RSI show over bought in such occasions ?
Sometime it may.. It actually depends on where RSI was prior to the trend.
Use ADX in this scenario to measure the strength of the trend, RSI may be well over 70 but if ADX is climbing it may further
indicate a trending market.. IF +DI line of ADX above the -DI line it indicates an uptrend.

Divergences are a key point to note on any indicator;

Divergences occur between a technical indicator (i.e. RSI) and the security’s price when the direction of the indicator does not confirm the price trend.

bearish divergence — the stock records higher highs while the RSI forms lower lows

bullish divergence — the stock records lower lows while the RSI forms higher highs

RSI - Which period to take?
Standerd use is 14day RSI. The shorter number of days used, the more volatile the RSI is and the more often it will hit extremes.
Different sectors and industries have varying threshold levels when it come s to the RSI. Stocks in some sectors will above 75-80 before dropping back and others can have a tough time breaking 70 even.

Back testing is a good rule in this scenario. Check the stock you want the RSI value to be measured and observe it over a long term (1 year or more) to determine what level the historical RSI has traded at and how the stock reacted when it reached those levels.

Stefan wrote:Thanks TAH and Smallville
However these are only for trading correct? What if I am a long term investor and just buy undervalued shares and not interested in the rapid increase or decrease in price. Eg. some are saying that the market will come down again and asking everyone to be careful, does this relate to investors as well?

A longterm investor usually not bothered by intraday/shortterm fluctuations..... but there are things you need to take care what companies you invest...usually as rule of thumb invest max 10% of your capital in one company. also dont invest heavily on 1 sector alone, try and diversify in the simplest form,also invest in bonds....etc.

Investors are known to be lone wolves....so they dont to listn to others but every now and then listen they may make sense....

Also keep an eye on your investment.....Dont just forget it thinking you invested longterm.You need to check whether the stocks are performing as expected.Don’t be tempted to sell shares that are doing well to take your profit. you are in it for the long term.

On the other hand investments that are not doing well should be sold and replaced.
Remember that it is better to lose a little rather than wait in the hope that the investment will do better when in fact it continues to do badly and you lose more money.

Look whether company makes regular dividends.....

One of the golden rules is that when the market is down then that is the best time to buy stocks and when the stock index market is high its time to sell the stocks that are not performing so well and reinvest the proceeds in bonds or real estate....or FDs.

When the markets turn down don’t make the mistake of panic selling. The economy goes in cycles so a market that is down will soon move up again. Always bear in mind that a market that is low presents a buying opportunity.


TAH

who are using GOTX ? can we get historical data from GOTX ?

Can someone attache historical price data of kota/uml/plc & mal ?. I am trying to learn TAs now ? I found a free software called "best charts" i am trying to do from that.

GOTX is a an application used by brokers I think.. Capital Alliance is using and I think even providing it for their clients..

I'm not so sure..

yes. I could not find there historical price option. That is why I put here, if so anyone can attach here historical prices of kota/uml/plc/mal

smallville wrote:GOTX is a an application used by brokers I think.. Capital Alliance is using and I think even providing it for their clients..

I'm not so sure..

Optfo, since most of your question would have been answered by others, let me just add


There were periods at CSE when RSI was in overbought for months. Apr
to June 2010 is one. Again it repeated in Sept 2010. and Early 2011.

So
just because RSI is high we do not have to panic. It does not always
mean that people will sell like mad. It depends. The overall market sentiment and buyers meeting selling pressure.

However, if RSI is high long period ( several months) it is not healhty and sudden panic selling can start at slightest bad news.