What is the RSI Indicator – RSI Indicator Kya Hai
RSI indicator is such a tool by learning that you can easily understand the momentum of the market and by learning it, you can earn a lot of profit. Today in this post we will know what is the RSI indicator. RSI is an indicator that can easily predict the uptrend or recession in a stock.
In today’s post, we will understand RSI indicator in Hindi i.e. in our national language. As we are seeing Nifty has come to the highest level of its life in today’s time. Nifty has crossed 17 thousand and is flying above. Be it Nifty or any stock RSI works in every instrument.
The RSI indicator provides us with our broker. If you are new to the stock market, then by reading the post below, you should know the basics of stock market, because of this you will not find new words like Broker, Damt, Squareoff.
RSI Meaning
RSI is an indicator or tool with the help of which we can understand the momentum of a stock or an entire index. The full form of RSI is Relative Strength Index. The RSI indicator is such a technical indicator, with the help of which the market momentum is detected.
We use this tool for technical analysis. RSI helps to know oversold or overbought to measure the recent price change. This indicator moves up and down between the two lines.
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When it crosses the upper line it is called overbought and if it crosses the lower line then it is called oversold. A line graph is formed, a line graph is formed between these two lines and there is a divergence in it, which is called RSI divergence. In earlier times there were two lines of 70 and 30. The line above 70 is above which the line graph is said to be overbought.
RSI Signal:
The Relative Strength Index (RSI), developed by J Wells Wilder, is used to measure the movement of a price. Which measures the speed and change of price movements. Traditionally, the RSI is considered oversold when it is above 70 and below 30. Signals can be generated by looking for divergence and failure swing.
RSI of Nifty:
Using RSI in Nifty also, we can easily know how the entire market will perform in the coming time by knowing the momentum of Nifty by using it. Nifty is an index which lists the top 50 companies of India. I have already written about Nifty 50 company list and Nifty, you should read it once. Understand the chart of Nifty from dekhne to jitna ni aaega then RSI indic
RSI full form:
The full form of RSI is Relative Strength Index. With the help of this, we understand the power of price in the market. RSI tells us what is the true value of any stock in the stock market.
RSI in share market:
In the share market, we can use an indicator named RSI in any segment. Be it NIFTY 50 index or stock of any company. Rasi is able to tell us what is the cost of that instrument at that time.
RSI tells the market by dividing it into three parts, first of all it should be known that two levels are formed in the RSI indicator and whenever any one of these levels moves up or down by cutting the price, then we OVERbought that stock. Or called OverSOLD. Read below to understand the meaning of both.
Overbought means whenever a stock has been overbought, due to which the price of that stock has increased, but after a certain distance, it can now start selling.
Read Also: Share market kya hota hai
Oversold means that the selling of any one stock has become too much, due to which the price of that stock has gone up a lot and cannot fall more than this, we call it oversold.
RSI indicator tool:
When every broker like Zerodha Upstox GROWW ALICEBLUE etc. gives you a free account by opening a DMAT account, then these indicators are given free of cost in your trading dashboard.
All you have to do is add it to your chart from the menu of indicators. I have explained in the video below how to add RSI to your chart on Zerodha platform. Watch the full video, how we can do it in the best way by using RSI and making some changes in it.
Like I told, there is a free RSI indicator for which we do not need to pay any money, if you do not have a demat account, you can open it from the link given below. If you want to do RSI by going to other website also, then I have a solution for that too, the link of rsi indicator website is given below, you can go to it and do RSI indicator in your chart.
Keep in mind that in the above video, I have told the necessary changes and levels in RSI which I may use, then definitely watch the video completely.
RSI indicator meaning
The RSI indicator is made by dividing it into two levels, we are not going to make it, so we will understand how to use it instead of getting into it more. This indicator is kept in the range from 0 to 100. Generally if you see, when the line goes below 30 then it is oversold.
And when it goes above 70 then overbought but as change is necessary with time, we also need change in this system. I have shown live in my youtube video how to change these level and for how much so once you watch the above video.
How to use RSI indicator?
We will use the RSI indicator very wisely. Whenever the line of the indicator goes above the level I mentioned, we will BUY the stock and whenever it goes down, we will SELL. We take trade in the market when the market is following a trend. As I have mentioned earlier, there are two trends in the market which are as follows:
- UPTREND
- DOWNTREND
- SIDEWAYS
We trade in uptrend and downtrend, just because the market is stuck in sideways, so we do not trade. Understand this much that if there is a line between 30-70 in the rope, then we will not trade.
RSI indicator in zerodha
Whether it is Zerodha or any other broker’s platform, all have to see RSI in the same way, first of all login to the account and if the account is not there, then open the account in just 15 minutes. After that open the chart of any stock and search RSI by clicking on the indicator in the top menu and add it to your chart.
RSI Trading Strategy
To understand the RSI trading strategy better, watch the video and then buy or sell a stock and see how the RSI trading strategy is working. If you ever learn a new strategy, do not trade with your full capital. Strategy is a lot, use what you understand and find easy and become proficient in it.
Summary
We learned how we can earn good money of the week by doing swing trading. In this post by RSI indiactor Kya Hai, we have learned what will be our trading strategy with the help of our RSI and we have to trade without forgetting the rules of swing trading.
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