Exhausted RSI
Watch the rsi of falling stock/nifty
If it rebounds from above 30, ignore!
If it rebounds from below 30, sit up and watch carefully!
If the price continues to fall, rsi continues to repeatedly (2-4 times) bang its head in the very low rsi wall (say 30 to 5) and never rising more than 55-60 in-between,
get ready, your prey is in front of you!!
And when the stock or nifty has fallen "a lot", rsi has exhausted falling down and is starting to move up while price is still down, pounce!!!
You have just entered a trade in which the odds are highly favourable to you and the stock is extremely oversold in the given time frame.
Then hold till the base line becomes horizontal.
For weak hearts, hold till rsi crossess 80.
For Day Trading take rsi 14/2min
For Swing (1-3 months) trading take rsi 14/1d
U can verify the trade by ema 34/8 in swing trading and ema 10/50 in day trading (just to amuse urself, otherwise verification is not required).
Similarly, reverse is true for the up moves.
Cautions :
1) Don't carry forward day trading.
2) If u don't get the exact signal as above, don't trade.
For BTST
BTST (Buy Today Sell Tomorrow)
STBT (Sell Today Buy Tomorrow)
BTST any good stock near closing if
1) it has exahusted near lower rsi wall (30-0) in the last few hours, or
2) it has just given a charge towards upper rsi wall (70-100) (preferably after exhausting near lower rsi wall)
3) it has remained by and large within 35-65 range for the entire day after remaining near high rsi wall the previous day (meaning it is in strong uptrend and is refusing to go down before another charge up)
----------------------------------
STBT any good stock near closing if
1) it has exahusted near upper rsi wall in the last few hours, or
2) it has just given a charge towards lower rsi wall (preferably after exhausting near upper rsi wall)
3) it has remained by and large within 35-65 range for the entire day after remaining near lower rsi wall the previous day (meaning it is in strong downtrend and is refusing to go up before another charge down)
----------------------------------
RSI is said to have exhausted if it has banged its head against the upper or lower wall a few times while the price was clearly trending.
----------------------------------
The same applies to nifty futures as well.
Also, obviously, only stock futures should be taken for btst or stbt for cost considerations.
The stock or nifty is likely to give you handsome profit in the morning. Due to global pressures, if the stock chosen as per above rules behaves adversely, it is most likely to rebound.
*******************************************
If short term trend is up,
BUY when rsi 14/30min
on 1 month chart
goes below 30.
wait for 2-4 days and see the magic.
book profit when rsi has exhausted in the overbought zone.
-------------------------------------
If short term trend is down,
BUY when rsi 14/30min
on 1 month chart
goes below 20 and exhausts.
wait for 2-4 days and see the magic.
book profit when rsi has exhausted in the overbought zone.
(if, during down trend u buy at rsi below 20 but without waiting for its exhaustion
book profit when rsi touches 60
because it is expected that price will fall after this brief relief rally, for rsi to exhaust.)
-------------------------------------
Never short!
-------------------------------------
Bite the size you can chew!
-------------------------------------
By "exhaust", I mean the rsi bangs its head quite a few times in the 30-0 or 70-100 rsi wall while the price is falling falling and falling or rising rising rising.
-------------------------------------
A) go to website (http://www.google.com/finance?q=NSE:.NSEI)
for stock pl search stock in the column before "Get Quotes"
B) click on '1m' inside graph window
C) click on "technicals" below graph window.
D) Click on "add technical"
E) Select RSI (14/30min will appear automatically), Select period as 14
F) You are ready!
If it rebounds from above 30, ignore!
If it rebounds from below 30, sit up and watch carefully!
If the price continues to fall, rsi continues to repeatedly (2-4 times) bang its head in the very low rsi wall (say 30 to 5) and never rising more than 55-60 in-between,
get ready, your prey is in front of you!!
And when the stock or nifty has fallen "a lot", rsi has exhausted falling down and is starting to move up while price is still down, pounce!!!
You have just entered a trade in which the odds are highly favourable to you and the stock is extremely oversold in the given time frame.
Then hold till the base line becomes horizontal.
For weak hearts, hold till rsi crossess 80.
For Day Trading take rsi 14/2min
For Swing (1-3 months) trading take rsi 14/1d
U can verify the trade by ema 34/8 in swing trading and ema 10/50 in day trading (just to amuse urself, otherwise verification is not required).
Similarly, reverse is true for the up moves.
Cautions :
1) Don't carry forward day trading.
2) If u don't get the exact signal as above, don't trade.
For BTST
BTST (Buy Today Sell Tomorrow)
STBT (Sell Today Buy Tomorrow)
BTST any good stock near closing if
1) it has exahusted near lower rsi wall (30-0) in the last few hours, or
2) it has just given a charge towards upper rsi wall (70-100) (preferably after exhausting near lower rsi wall)
3) it has remained by and large within 35-65 range for the entire day after remaining near high rsi wall the previous day (meaning it is in strong uptrend and is refusing to go down before another charge up)
----------------------------------
STBT any good stock near closing if
1) it has exahusted near upper rsi wall in the last few hours, or
2) it has just given a charge towards lower rsi wall (preferably after exhausting near upper rsi wall)
3) it has remained by and large within 35-65 range for the entire day after remaining near lower rsi wall the previous day (meaning it is in strong downtrend and is refusing to go up before another charge down)
----------------------------------
RSI is said to have exhausted if it has banged its head against the upper or lower wall a few times while the price was clearly trending.
----------------------------------
The same applies to nifty futures as well.
Also, obviously, only stock futures should be taken for btst or stbt for cost considerations.
The stock or nifty is likely to give you handsome profit in the morning. Due to global pressures, if the stock chosen as per above rules behaves adversely, it is most likely to rebound.
*******************************************
If short term trend is up,
BUY when rsi 14/30min
on 1 month chart
goes below 30.
wait for 2-4 days and see the magic.
book profit when rsi has exhausted in the overbought zone.
-------------------------------------
If short term trend is down,
BUY when rsi 14/30min
on 1 month chart
goes below 20 and exhausts.
wait for 2-4 days and see the magic.
book profit when rsi has exhausted in the overbought zone.
(if, during down trend u buy at rsi below 20 but without waiting for its exhaustion
book profit when rsi touches 60
because it is expected that price will fall after this brief relief rally, for rsi to exhaust.)
-------------------------------------
Never short!
-------------------------------------
Bite the size you can chew!
-------------------------------------
By "exhaust", I mean the rsi bangs its head quite a few times in the 30-0 or 70-100 rsi wall while the price is falling falling and falling or rising rising rising.
-------------------------------------
A) go to website (http://www.google.com/finance?q=NSE:.NSEI)
for stock pl search stock in the column before "Get Quotes"
B) click on '1m' inside graph window
C) click on "technicals" below graph window.
D) Click on "add technical"
E) Select RSI (14/30min will appear automatically), Select period as 14
F) You are ready!
*******************************
RSI Protocol
Among the various types of RSI charts, the seniority list is as below:-
14/1week on 2 year chart (General)
14/1day on 3-month chart (Brigadier)
14/30min on 1-month chart (Colonel)
14/2 min on intraday or 5-day chart (Captain)
To interpret the Captain's move, keep an eye on what the Colonel is doing.
To interpret the Colonel's move, keep an eye on what the Brigadier is doing.
To interpret the Brigadier's move, keep an eye on what the General is doing.
If the junior's actions are ante to his superior expect the junior to be repremanded and forced to change his direction.
Don't take big positions on ante junior positions!
If the General is not tired on a trend-mission it is safe to assume that the Brigadier has not exhausted!
If the Brigadier is not tired on a trend-mission it is safe to assume that the Colonel has not exhausted!
If the Colonel is not tired on a trend-mission it is safe to assume that the Captain has not exhausted!
Therefore,
If junior's state-of-affairs is not ratified by any of his superiors, don't take any position.
If junior's state-of-affairs is ratified by his immediate superior only, take small to medium positions for short term.
If junior's state-of-affairs is ratified by all of his superior ranks, take larger positions for extended peiods of time.
This way, you will never make a wrong assessment of the ground situation.
*********************************************
Recently, it has been found that RSI can humble even the fox!!
RSI has double meaning to whatever it does
When it hits its head in the oversold or overbought wall
-it may mean it is indeed "over" sold or bought
-it may mean "ye to sirf shuruaat hai, aage aage dekhiye hota hai kya"!
When it retreats back after hitting the oversold or overbought wall
-it may mean price is going to correct
-it may mean the rsi is making room for itself to hit again harder!
When the rsi is not moving at all
-it may mean the price has paused
-it may mean that the price trend is losing the steam!
When the rsi is horizontal and price is not
-it may indicate rise in price if rsi is in the lower band
-it may indicate consolidation or fall in price if rsi is in the upper band
When the rsi is parallel to the price line
-it may indicate trend reversal if both are horizontal
-it may indicate trend strengthen if both are rising or both are falling
beware of the fox in the trading jungle
the RSI!
It knows a lot but is foxy in revealing!!!
******************************************
Ascent
------
Stage I : RSI rises, Price rises
Stage II : RSI flat, Price rises
Stage III : RSI falls, Price rises
Descent
-------
Stage IV : RSI falls, Price falls
Stage VI : RSI flat, Price falls
Stage VII : RSI rises, Price falls
Stage VIII : RSI rises, Price rises
(Stage VIII is same as stage I.)
Caution:-
-------
1. Stage I starts from the deep valleys of oversold RSI.
2. Traders should keep the stages of the rocket in mind to plan their "journey"
3. The rocket can skip stage II &/or III during ascent if rally is weak
4. The rocket can skip stage VI &/or VII during descent if rally is weak
5. During bull runs, stage VI & VII are likely to be absent.
6. During bear runs, stage II & III are likely to be absent.
7. A stage has not ended till the next has started.
RSI Protocol
Among the various types of RSI charts, the seniority list is as below:-
14/1week on 2 year chart (General)
14/1day on 3-month chart (Brigadier)
14/30min on 1-month chart (Colonel)
14/2 min on intraday or 5-day chart (Captain)
To interpret the Captain's move, keep an eye on what the Colonel is doing.
To interpret the Colonel's move, keep an eye on what the Brigadier is doing.
To interpret the Brigadier's move, keep an eye on what the General is doing.
If the junior's actions are ante to his superior expect the junior to be repremanded and forced to change his direction.
Don't take big positions on ante junior positions!
If the General is not tired on a trend-mission it is safe to assume that the Brigadier has not exhausted!
If the Brigadier is not tired on a trend-mission it is safe to assume that the Colonel has not exhausted!
If the Colonel is not tired on a trend-mission it is safe to assume that the Captain has not exhausted!
Therefore,
If junior's state-of-affairs is not ratified by any of his superiors, don't take any position.
If junior's state-of-affairs is ratified by his immediate superior only, take small to medium positions for short term.
If junior's state-of-affairs is ratified by all of his superior ranks, take larger positions for extended peiods of time.
This way, you will never make a wrong assessment of the ground situation.
*********************************************
Recently, it has been found that RSI can humble even the fox!!
RSI has double meaning to whatever it does
When it hits its head in the oversold or overbought wall
-it may mean it is indeed "over" sold or bought
-it may mean "ye to sirf shuruaat hai, aage aage dekhiye hota hai kya"!
When it retreats back after hitting the oversold or overbought wall
-it may mean price is going to correct
-it may mean the rsi is making room for itself to hit again harder!
When the rsi is not moving at all
-it may mean the price has paused
-it may mean that the price trend is losing the steam!
When the rsi is horizontal and price is not
-it may indicate rise in price if rsi is in the lower band
-it may indicate consolidation or fall in price if rsi is in the upper band
When the rsi is parallel to the price line
-it may indicate trend reversal if both are horizontal
-it may indicate trend strengthen if both are rising or both are falling
beware of the fox in the trading jungle
the RSI!
It knows a lot but is foxy in revealing!!!
******************************************
Ascent
------
Stage I : RSI rises, Price rises
Stage II : RSI flat, Price rises
Stage III : RSI falls, Price rises
Descent
-------
Stage IV : RSI falls, Price falls
Stage VI : RSI flat, Price falls
Stage VII : RSI rises, Price falls
Stage VIII : RSI rises, Price rises
(Stage VIII is same as stage I.)
Caution:-
-------
1. Stage I starts from the deep valleys of oversold RSI.
2. Traders should keep the stages of the rocket in mind to plan their "journey"
3. The rocket can skip stage II &/or III during ascent if rally is weak
4. The rocket can skip stage VI &/or VII during descent if rally is weak
5. During bull runs, stage VI & VII are likely to be absent.
6. During bear runs, stage II & III are likely to be absent.
7. A stage has not ended till the next has started.
Courtesy: Jagmohan
