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

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.

😂😂😂😂😂😂😂😂😂😂🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣😂😂😂😂😂😂😂😂😂🤣🤣🤣 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

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

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?
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

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
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »