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Investing in stock market - stock price movements

How to predict the stock price movements on the stock market?


This is a question asked by all investors who invest their equity in securities. Equity trading has been going on for some nice years, and since then has been invented a multitude of elements that help investors make a living.

I would like to describe one of the stock market indices. What is this…?

What are stock market indicators?


Indicator which, based on the charts of a given company, attempts to determine by means of a given pattern the motion of the stock. This definition does not need to be known. The most important thing is to be able to apply the oscillator in practice.

To start with, I will describe the RSI.

RSI (relativ strength index)

This oscillator is successfully used on all market types.
The indicator compares the current behavior of a given instrument with its behavior from the past.

The RSI has its own formula:

RSI = 100-100 / 1 + RS
RS = (a / b)
A = Average value of closing price increase y days
B = Average value of the closing price drop from y days
Of course you do not have to memorize this pattern.

The shorter the time, the more sensitive the oscillator is, and the wider the amplitude. The relative strength indicator works when the oscillation reaches the lower and upper extremes. How to interpret this.

• The RSI at 100 increases the probability of reversing the trend to a bearish,
• RSI at 70 and above should buy shares
• RSI at 30 and less should sell shares
• RSI at 0 increases the probability of a trend reversal.

Why? Because pow. 70 stock price is entering the upward trend. Less than 30 discount.

RSI oscillator is the most popular stock index in the world


Thanks to him, investors earn a few million a day. Think about whether it would be good to be one of them.

The only indicator for you will not earn anything. The most important is the ability to read it. There is no need for higher education, but you have to know about that and that. Remember that this oscillator can not be used alone. What does it mean? And that you should also suggest other price charts.

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