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What does RSI mean in stock trading?
I have been hearing about RSI and a few other names for stock analysis. Does anyone know what RSI stands for? I was wondering how important RSI is for picking a good stock and figuring out how to use this in my chart analysis.
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#2
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RSI stands for "Relative Strength Index" which you will most likely find in a stock chart. This is a very valuable tool when doing stock analysis because it shows when good times to buy are and also what the best times to sell are.
The relative strength factor can be found as an analysis tool where it shows when a stock is oversold or overbought. Usually if the relative strength index is below 20 or 10, the stock is oversold and this is generally a good time to buy. When the RSI is above 80 or 90, then the stock is overbought and it usually means it's a good time to sell. You'll see when a stock is running high that the RSI will climb very high as well and vice versa when the stock is low. |
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