/Tag: overbought

Mastering Bollinger Bands | Bollinger Band squeeze uncovered

What is Bollinger Band? Bollinger Bands are developed by John Bollinger to identify and to take advantage of the volatility in the market. It consists of a simple moving average and two standard deviations of the same moving average known as the bands. The bands move parallel, in tandem, with the moving average. The most commonly used simple moving averages in Bollinger band are  20 SMA and 25 SMA. The two main applications of Bollinger bands are to identify - consolidation, by Bollinger band squeeze - the overbought and oversold condition in a sideways market. The bandwidth of the [...]

Mastering Bollinger Bands | Bollinger Band squeeze uncovered2019-01-05T14:45:16+00:00

Relative Strength Index | How to trade the RSI Indicator?

RSI IndicatorJ.Welles Welder built an indicator to identify the strength of the market movement, rather than just comparing the highs and lows and termed it as Relative Strength Index. The Relative Strength Indicator defines the overbought and oversold zones of the market and the RSI crossover from the zones signals a profit booking (correction) rally or trend reversal. So when the trend bucks, make bucks with the RSI Indicator.Relative Strength Index- The momentum oscillatorRelative Strength Index ranges only between the values of 0-100. It does not extend its value as the price moves. Instead, it confines the strength and momentum [...]

Relative Strength Index | How to trade the RSI Indicator?2019-03-09T17:29:06+00:00