How to Identify Stocks to BUY or SELL using Relative Strength Index (RSI) | RSI Trading Strategy

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In this video, we explore Relative Strength Index or RSI - a powerful tool that can help you navigate the ups and downs of the stock market with precision. RSI, also known as the Relative Strength Index, ranges between 0 and 100. If the RSI is above 70, it indicates that a stock is overbought, and it might be a good time to consider selling. Conversely, if the RSI is below 30, it's a sign that the stock is oversold, which could be a buying opportunity. For Asian Paints recently moved from an overbought state to oversold territory, signaling a buying opportunity after a 15% drop in the last 3 months.

In the video, I also explain how to calculate a 14-day RSI using a 5-step process for a stock like HDFC Bank although the relative strength indicator can also be applied to broader market indices like the Nifty50. To wrap things up, we also delve into the advanced concept of RSI divergence using the real-life example of Reliance Industries

👉 Video Chapters:
00:00 Introduction to RSI Trading Strategy
00:55 What is Relative Strength Index
03:32 Calculation of RSI
06:18 RSI Failure Swing
08:26 RSI Divergence Trading Strategy

#rsi #rsitradingstrategy #relativestrengthindex #technicalindicators

Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links