Opinion: You should be concerned when this stock market indicator gets as high as it is now

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 44 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 97%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

OPINION: How can you identify when a market or stock is overbought? Look at RSI on a weekly (or daily) stock chart, Michael Sincere recommends.

While there are hundreds of stock market indicators and oscillators, most investors and traders only need a few. One of the most popular oscillators is RSI . Created by a brilliant engineer, Welles Wilder, RSI tells when an index or a stock is overbought or oversold. Like most “bounded” oscillators, it has a reading from 0.0 to 100.0 on the chart.

The purpose of RSI is to let you know if a market or stock is overbought or oversold and may reverse. It doesn’t mean that the security will reverse with 100% certainty, but it does indicate it’s in the danger zone. The screen shot was taken after the market closed on July 30. RSI as of the close on Aug. 6 rose to 71.1 on the weekly chart, which is extremely overbought. This doesn’t mean to sell everything but it does signal caution as stocks may reverse course — and soon. For comparison, the latest Nasdaq Composite COMP, +0.04% weekly RSI is 66.37 while the Dow Jones Industrial Average DJIA, +0.04% is at 66.31.

While some investment professionals preach that you cannot time the markets, in reality, a hard and fast plunge in RSI is an important tell, one that should not be taken lightly or ignored. Always confirm with other indicators before acting.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

😂😂😂😂😂😂😂😂😂😂🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣😂😂😂😂😂😂😂😂😂🤣🤣🤣 FUCK

AYA fintech network platform provides proprietary alpha stock signals and social finance tools for U.S. stocks such as Facebook, Apple, Microsoft, Google, Amazon, Nvidia, and Tesla (FAMGANT).

PE

nice

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Santoli’s Friday market notes: Stocks grind through a sluggish week, but seasonal headwinds awaitNew for subscribers: Santoli’s Friday market notes: Stocks grind through a sluggish week, but seasonal headwinds await. Check out CNBCPro today. Pro Before My portfolio comprising of mostly blue chip companies used to rise by 1% if Sensex rose 2% but now it rises by 1% if Sensex rises 3%. On down side it beats Sensex. If Sensex loses 1% my portfolio loses 2%. Pro tomsegura works on wall street?
Source: CNBC - 🏆 12. / 72 Read more »

Foot Locker vs. Kohl's: Two traders pick favorites after stocks get analyst loveThe technical setup in Kohl's could take the stock back to its old highs, says Inside Edge Capital Management founder Todd Gordon. TradingNation this is terrible news
Source: CNBC - 🏆 12. / 72 Read more »