Introduction

• The strategy we will be implementing today is RSI (Relative strength index)
• The Relative Strength Index is a momentum indicator that measures recent price changes to assess overbought or oversold conditions.
• RSI is the technical indicator developed by J . WELLES WILDER JR, IN 1978
• The RSI provides technical traders with signals of bullish and bearish price momentum and is often plotted below an asset’s price chart.
• stocks are generally considered overbought when the RSI is above 70 and oversold when below 30.
• The RSI works best in range trading rather than trending markets.

RSI ( Relative strength index) Positive Crossover

• RSI Positive crossover is a bullish crossover
• The RSI line is below the overbought line, which traders consider a buy signal.
• Let’s look at an example in the chart below  ( on DIVISLAB  a daily time frame)

A buy signal is triggered when the RSI line is below the overbought line, which traders consider a buy signal, let’s look at a few opportunities in the LIVE market

RSI ( Relative strength index) Negative Crossover

• RSI Negative crossover is a bearish crossover
• The RSI line is above the overbought line, which traders consider a sell signal.
• Let’s look at an example in the chart below  ( on Gail a daily time frame)

An RSI line is above the overbought line, which traders consider a sell signal, let’s look at a few opportunities in the LIVE market

Awesome, but what’s my takeaway?

•  Abbottindia, Alkem, Apollo hospital, DIVISLAB &  JUBLFOOD have given a buy call on a daily time frame (implementing RSI Positive crossover )
• ADANIENT, Adanitrans, Dixon, Gail & Heromotocorp  have given a sell call on a daily time frame (implementing RSI Negative Crossover)