Futures market and stock market indicators of the most famous swing. It is Wells • Oscar Wilde's first. The principle is that by calculating the magnitude of price ups and downs to infer trends in the strength of the degree of market movement, and to forecast the trends continue, or shift. In fact, it shows the stock price upward volatility of the volatility of the percentage of the total, if the value of large, said the market is in a strong state, if the value is small, then the market is weak. The index is usually referred to as rsi indicators. This is an important indicator measuring the city, but his role and size of the market value of stocks and futures are closely related, large fluctuations of small plates, small plates of large fluctuations. The specific method of calculation is: rsi (n) = (a / a + b) × 100% N days in which a represents the magnitude of price fluctuations in the size up, and b is the n-day volatility in the stock price down to size. a + b stock price during this period that the total size of the volatility.
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Relative Strength Index theory
RSI is based on the principle of simple calculation method to calculate the number of buyers and sellers of power, for example, 100 people face a commodity, if you buy 50 or more individuals competing to raise prices, commodity prices will rise. Conversely, if more than 50 people scrambling to sell, prices drop. Strength Index theory, any market prices rose or fell, all the changes between 0 and 100, according to a normal distribution, that the RSI value of more than changes between 30-70, usually 80 or 90 when that market has reached overbought (Overbought), thus market prices will naturally fall to adjust. When prices fell below 30 is considered low is oversold (Oversold), market rebound will occur.
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Relative Strength Index values
RSI between changes in the range 0-100, Strength Index values generally distributed in 20-80. 80-100 strong sell 50-80 Strong Buy 20-50 Weak wait 0-20 to buy a very weak Here, "strong", "strong" and "weak", "very weak" is a relative concept analysis.
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Relative Strength Index uses five different
1) vertex and the end point - 30 and 70 are usually oversold and overbought signals. 2) differences - when market conditions hit a new high (low), but not in a high RSI, which usually indicates the market will appear reversed. 3) Support and resistance - RSI can show support and resistance, sometimes more clearly than the price reaction chart support and resistance. 4) price trends form - compared with the price chart, price trends and patterns such as head and shoulders, double top on the RSI performance more clearly. 5) took a dramatic turn - when the RSI break (over the previous high or low), this may indicate that prices will have the same mutation with other indicators, RSI and other indicators to be used in conjunction, can not alone produce the signal, the price is to determine the market price confirmation the key. Relative Strength Index - formula and method RSI = [increase in average ÷ (average rise + fall mean)] × 100 Specific methods: Average increase in the number of a certain period of days increases the average and the average decline is in the same period the average number of days of declines. For example, we have to calculate 九日 RSI, we must first identify the rise in average nine days before the fall and the average, the following examples: Change the number of days the closing price Day 23.70 The next day 27.904.20 Day 26.501.40 Fourth day 29.603.10 Fifth day 31.101.50 Sixth day 29.401.70 Seventh day 25.503.90 Eighth day 28.903.40 Ninth day 20.508.40 Tenth day 23.202.80 (1-10 days and) +15.00 +15.40 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ 15 ÷ 9 = 1.6715.40 ÷ 9 = 1.71 The first day RSI = [1.67 ÷ (1.67 1.71)] × 100 = 49.41 The tenth day of rising average = 4.20 3.10 1.50 3.40 2.80 / 9 = 1.67 The tenth day of fall mean = 1.40 1.70 3.90 8.40 / 9 = 1.71 The tenth day RSI = [1.67 ÷ (1.67 1.71)] × 100 = 49.41 If the eleventh day of the closing price of 25.30, the Eleventh day of the increase in the average = (1.67 × 2.10) ÷ 9 = 1.72 Eleventh day of the fall average = 1.71 × 8 ÷ 9 = 1.52 The eleventh day RSI = [1.72 ÷ (1.72 1.52)] × 100 = 53.09 Accordingly, calculate the next few days RSI. Similarly, according to this method can calculate any number of days RSI. To a number of days with the RSI is appropriate. Originally proposed when the RSI indicator is 14 days, 14 days as a parameter value has become silent. However, in practice, analysts often feel that 14 days is too long a bit, only 5 days and 9 days method.
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Equity Securities
Relative Strength Index (RSI) Relative Strength Index is a period of time by comparing the average number and average closed up closed down the market to buy a few to analyze the selling intentions and strength, in order to make the future market trend. One. Formula and method RSI = [increase in average ÷ (average rise + fall mean)] × 100 Specific methods: Average increase in the number of a certain period of days increases the average and the average decline is in the same period the average number of days of declines. For example, we have to calculate 九日 RSI, we must first identify the rise in average nine days before the fall and the average, the following examples: Change the number of days the closing price Day 23.70 The next day 27.904.20 Day 26.501.40 Fourth day 29.603.10 Fifth day 31.101.50 Sixth day 29.401.70 Seventh day 25.503.90 Eighth day 28.903.40 Ninth day 20.508.40 Tenth day 23.202.80 (1-10 days and) +15.00 +15.40 ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ 15 ÷ 9 = 1.6715.40 ÷ 9 = 1.71 The first day RSI = [1.67 ÷ (1.67 +1.71)] × 100 = 49.41 The tenth day of rising average = 4.20 +3.10 +1.50 +3.40 +2.80 / 9 = 1.67 Average decline in the tenth day +1.70 +3.90 +8.40 = 1.40 / 9 = 1.71 The tenth day RSI = [1.67 ÷ (1.67 +1.71)] × 100 = 49.41 If the eleventh day of the closing price of 25.30, the Eleventh day of the increase in the average = (1.67 × +2.10) ÷ 9 = 1.72 Eleventh day of the fall average = 1.71 × 8 ÷ 9 = 1.52 The eleventh day RSI = [1.72 ÷ (1.72 +1.52)] × 100 = 53.09 Accordingly, calculate the next few days RSI. Similarly, according to this method can calculate any number of days RSI. To a number of days with the RSI is appropriate. Originally proposed when the RSI indicator is 14 days, 14 days as a parameter value has become silent. However, in practice, analysts often feel that 14 days is too long a bit, only 5 days and 9 days method. II. Application of the principles: (1) by the formula limits, regardless of how price changes in the strength index values are between 0 and 100. (2) Strength Index is maintained above 50 indicates a strong market, whereas less than 50 expressed as a weak market. (3) the strength of many indicators fluctuated between 70 and 30. When 六日 reach 80 when the index rose, the stock has been overbought, if passed, continue to rise, more than 90 or more, then that has to seriously overbought warning area, the stock has formed a head, most likely in the short term anti- turn rotation. (4) When 六日 strength index fell to 20, said the stock market has oversold, if passed, continues to drop to 10 below, said to have been seriously oversold the stock is likely to have the opportunity to rebound. (5) for each type of stock oversold overbought values are different. In the bull market, it is usually the strength of blue-chip index of 80 if they are overbought and oversold if 30 it is, as second and third line stocks, the strength index of 85 to 90 if they are overbought, if 20 to 25, it is oversold. But we can not rigidly to the above values, developed or affluent blue-chip stocks are overbought or oversold is mainly due to some of the stock has its own _set_ of overbought / sold levels, that is, the stock price over and over again, usually over to buy higher value (90 to 95), and also as oversold the value of low (10 to 15). For those more stable performance of the stock, lower the value of overbought (65 to 70), oversold the value of high (35 to 40). Therefore, we adopted a stock buy / sell action, we must first identify the stocks overbought / oversold levels. As a stock measure overbought / oversold levels, we can refer to the stock over the past 12 months strength index record. (6) overbought and oversold to determine the scope also depends on two factors. The first is the characteristics of the market, ups and downs of the market is not stable for more than 70 provisions generally overbought, oversold below 30. More dramatic changes in the market may provide more than 80 overbought, oversold below 20. The second is to calculate the time taken when the RSI parameters. For example, 9, RSI, can require 80 or more as overbought, oversold below 20. For the 24 RSI, can require 70 or more as overbought, oversold below 30. It should be noted, overbought or oversold market is not in itself a signal. Sometimes conditions change too rapidly, RSI will quickly exceed the normal range, then the RSI overbought or oversold often lose access to the city as a warning signal effect. For example, early in a bull market, RSI is often 80 or more will soon enter the area, and remain in this region for a long period of time, but this does not mean that rising prices will be over. On the contrary, it