Nov '25 • General discussion
RSI also know as Relative Strength index
In the first photo attached below, that is your RSI chart, also known as relative strength index. The second photo shows the whole chart in that RSI follows the chart. The RSI will let you know if the stock that you are choosing to trade is oversold or overbought. In order to figure this out you must understand how the market moves, and that the market moves in three ways meaning up down and sideways..
you will barely see the market only move sideways for the whole day, so therefore you will know that the market moves up and down after hitting the 70 mark on RSI or hitting the 30 mark on RSI, this is the most simplest chart read Rsi and place your bet correctly.. if the RSI is all the way at the bottom, as you see in the first photo attached. it is around the 30 Mark and a little bit under the 30 Mark. That means it is oversold and you're looking for an uptrade/ reversal in the market. We will talk about how to spot a reversal as well, but right now we will stick to RSI.
If RSI is at the 70 Mark or above it is overbought and you're looking for a downtrade. And let me explain the up and down of your trade. The way I trade the market is that I buy contracts for a certain amount and that contract that I buy is either a contract to buy the market going up or to sell the market going down. To clarify, if the market is heading up you make a trade that says that it is going up. If it's heading down you make a trade that says it's going down and in order to do that you have to trade Options trading.
The best place to enter your trades is either at the peak of the 70 Mark or at the peak of the 30 Mark. The market usually reverses after being above the 70 Mark or way below the 30 Mark and if you get into an entry on either side at the peak that will be good money for you to let it travel all the way from 30 to 70 or 70 to 30... Refer to the first picture to understand this whole spiel
Next lesson will be on MacD
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RSI also know as Relative Strength index
