Tuesday, October 28, 2008

Relative Strength Index as an Indicator

Most widely termed RSI, the relative strength index is another way to measure the overbought or oversold status of an equity. It compares the amount of recent gains to recent losses and a value above 70 is generally considered overbought and less than 30 oversold. I prefer stocks on the oversold side because the are due for a pop to the upside, so this tool can be used to filter your picks also.

Have a good one,
Roger

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