Transaction Tips and RSI Metrics
In the first time, RSI was used in the futures trading, and later, it was found that the index was used to guide the stock market investment, and the characteristics of the index were summarized and summarized. Now, RSI has become one of the most widely used technical indicators for investors.
The general principle of the investment is that the behavior of the investors is a reflection of the comprehensive results of various factors, the change of the market is ultimately dependent on the supply and demand relationship, and the RSI index is based on the principle of supply and demand balance. By measuring the percentage of the total amplitude of the stock price in a certain period as a percentage of the average value of the total change of the stock price, the strength degree of the multi-air force is evaluated, and the specific operation is prompted.
The application law of RSI is more complex, including cross, numerical value, form and deviation.
With regard to the use of RSI, the first step is to observe the position relationship of two or more different parameter curves. The calculation time range of RSI with larger parameters is larger, so the conclusion will be more reliable. However, as with the average system, it is impossible to avoid the shortcomings of slow response, which should be paid attention to in the process of use.
RSI different parameter curves are used in exactly the same way as moving averages:
(1) if the short-term RSI curve with small parameters is above the long-term RSI curve with large parameters, then the current market is a long market;
(2) if the short-term RSI curve with large parameters is above the long-term RSI curve with small parameters, then the current market is a short market;
RSI值
The RSI value divides the range from 0 to 100 into four regions, from "very weak", "weak" to "very strong". The dividing line between "strong" and "weak" is 50, but the boundary between "very weak" and "weak" and between "strong" and "very strong" will change with the change of RSI parameters. The division of regions is different with different parameters. Generally speaking, the larger the parameters are, the closer the dividing line is to the center line 50, and the farther away it is from 100 and 0. However, it should generally fall within the range of 15, 30 to 70, 85. If the RSI value exceeds 50, indicating that the market enters a strong market, you can consider buying, but if you continue to enter the "extremely strong" area, you have to consider that things must be reversed and ready to sell. The same is true of RSI values below 50. If you enter the "extremely weak" area, it means overselling and should wait for the opportunity to buy.
Short-term RIS and long-term RIS
Short-term RSI refers to RSI, with relatively small parameters. Long-term RSI refers to RSI. with relatively long parameters. For example, in the 6-day RSI and 12-day RSI, the 6-day RSI is the short-term RSI, the 12-day RSI is the long-term RSI.. The intersection of long-term and short-term RSI lines can be used as a way for us to study and judge the market.
1. When short-term RSI > long-term RSI, the market belongs to long-term market.
2. When the short-term RSI 3, when the short-term RSI line breaks through the long-term RSI line at the low level, it is the buying signal of the market. 4, when the short-term RSI line breaks through the long-term RSI line at a high level, it is the selling signal of the market. Attention should be paid to the application in actual combat 1, value. RSI greater than 50 is a strong market, more than 80 to enter the overbought area, easy to form a short-term backstop; less than 50 is a weak market, less than 20 to enter the overselling area, easy to form a short-term rebound. RSI was originally below 50 and then turned upward to break through the 50 mark, indicating that the stock price has strengthened; RSI was originally above 50 and then turned down below 50 points, indicating that the stock price has weakened. However, the index passivation phenomenon of overbuying without falling, overselling but not rising often occurs, and the value of RSI plays little role in the research and judgment. Shanghai Science and Technology entered the overbought area on December 27, 2002 and passivated at a high level for 8 days, but this is the best time to intervene after the breakthrough. 2. Crossing. Generally, there are two RSIs in long and short term. Short-term RSI is more than long-term RSI is a multi-head market, and vice versa. Short-term RSI is in the over-selling area below 20, and the short-term RSI is a buying signal when the RSI is crossed from the bottom to the upper side of long-term RSI. The short-term RSI is in the over-purchase area above 80, and the short-term RSI is in the upper to the long-term RSI from top to the bottom, the signal is sold. 3, form. Morphological analysis has been widely used in RSI, which can be used as buying and selling signals according to the top or bottom of head and shoulder, double head or bottom, etc. The Shanghai Composite Index hit a W bottom in the overselling area when it bottomed out the second time in 1346 last year. 4, deviate from each other. Stock prices are lower and lower, while RSI, on the other hand, is higher and higher, deviating from the bottom, and it is easy to reverse the rally. Stock prices rise by waves, but RSI waves lower and lower, at the top of the deviation, the stock price is easy to reverse the decline. The Shanghai Composite Index hit the bottom in 1311 this year, and the RSI deviated from each other after touching 1492 on January 17, so it turned and adjusted downward after touching 1529 on March 4. When the Shanghai Composite Index hit its bottom in 1339 last year, the RSI also showed a clear bottom deviation. 5. Trend line. Connect two consecutive bottoms of RSI and draw a tangent tilted from left to upper right. When RSI falls through the tangent, it is a better selling signal. Connecting to the two consecutive peaks of RSI, draw a tangent tilted from left to lower right. When RSI breaks through the tangent, it is a better buying signal. In fact, this is only a short-term trading signal, the midline effect is not very good. The Shanghai Composite Index fell below the upward trend line that began in 1311 on January 17, a selling signal that circumvents short-term risks, but it is clear that the departure of the midline from the market is a better signal.