Research paper on Relative Strength Index
RSI or the relative strength index oscillator. The oscillator is something that is more of a range and this range of RSI is 0-100. This is one of the most used leading indicators. Why we call RSI a leading indicator because it generates signals before anticipated price movement happens. Jr. J. Welles Wilder Introduced the relative strength indicator which measures the velocity of price movement during trading. Instrument underlining can be stocks market, commodity market, forex. etc.
- The formula for calculating RSI is RSI = 100-100/1+RS.
- What is RS?
- RS = Average gain over the period / Average loss over the period
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The overbought and oversold reason is a very important specific period to calculate the rsi is 14. Traders are free to change the value according to their needs. Low specific period e.g. 7 days generates more buy and sell signals with high wrong signals. Higher specific periods generate fewer buy and sell signals.
Top 10 Research paper on RSI Indicator
Important questions for retail investors- Do you plan your trade before the market opens?
- How important for you to calculate your risk?
- What is overtrading?
- What was the motivation you become the trader?
- Do you have the explanation for your trade decision why you buy or sell?
- Do you have any trading strategies?
- What is the success rate of your trading strategies?
- How you avoid the emotional trap?
- Do you identify the driving force for the market?
- Do you try to hide your losing positions and show your winning position?
- How you react when your trade goes against you?
- Do you try average losses?
- Do you decrease your trading volume when you are loosing?
- Do you increase your trading volume when you are winning?
- When did you decide to cover your positions?
- Do you have a trading system for trading?
- What percentage of your trade is based up the trading system?
- Do you have any trading rules?
- Smart money vs Dumb money in the Stock market
- The truth of the brokerage industry, Trading expert & retail traders
- Do you plan your trade before the market opens?
- How important for you to calculate your risk?
- What is overtrading?
- What was the motivation you become the trader?
- Do you have the explanation for your trade decision why you buy or sell?
- Do you have any trading strategies?
- What is the success rate of your trading strategies?
- How you avoid the emotional trap?
- Do you identify the driving force for the market?
- Do you try to hide your losing positions and show your winning position?
- How you react when your trade goes against you?
- Do you try average losses?
- Do you decrease your trading volume when you are loosing?
- Do you increase your trading volume when you are winning?
- When did you decide to cover your positions?
- Do you have a trading system for trading?
- What percentage of your trade is based up the trading system?
- Do you have any trading rules?
- Smart money vs Dumb money in the Stock market
- The truth of the brokerage industry, Trading expert & retail traders
3 Comments
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