Technical Indicators - Relative Strength Index (RSI)

One of the most popular technical analysis indicators, the Relative Strength Index (RSI) is an oscillator that measures current price strength in relation to previous prices. The RSI is a versatile tool, it can be used to:

• Generate buy and sell signals
• Show overbought and oversold conditions
• Confirm price movement
• Warn of potential price reversals through divergences

1. RSI Buy ad Sell Signals
2. RSI Alternative Buy and Sell Signals and Divergences

Technical Indicators - RSI Alternative Buy and Sell Signals and Divergences

An alternative way that the Relative Strength Index (RSI) gives buy and sell signals is given below:

• Buy when price and the Relative Strength Index are both rising and the RSI crosses above the 50 Line.
• Sell when the price and the RSI are both falling and the RSI crosses below the 50 Line.

An example of this methodology for buying and selling based on 50 Line crosses is given below in the chart of Wal-Mart (WMT):

Technical Indicators - RSI Buy and Sell Signals

The chart below of eBay (EBAY) shows how the RSI can generate easy to follow buy and sell signals:

Today's Forex Prediction - July 29, 2010

PAIR	TODAY'S PREDICTION
	MAX	MIN
EUR/USD	1.3090	1.2946

See : How To Applying My Prediction

Yesterday Prediction Rate : ACCURATE (Average Error < 50pips)