How to determine Overbought or Oversold conditions in a Stock | Blog Brings Profit For You
  • Recover Lost Money Plan

    A number of traders have lost their money in the market due to wrong trading advice or wrong decisions and emotions. We keep on getting a number of requests for helping these traders recover their lost money. Thus, this was the genesis of Recover Lost Money Plan. We are proud to say that till date we have helped 1290 people recover their lost money. Recover Lost Money in Market

  • Our Most Successful Intraday Tip

    Jackpot tip, as the name suggests has the potential to make you a Millionaire as it is not the number of tips one trades; but it is the accuracy of a single tip which has the potential to make you a Millionaire. This tip is a value for money for all i.e whether one can see the trading terminal or not or is dealing through a broker on phone at BSE, NSE or in Future and Options segment.
    Click on Jackpot Sure Shot Tip to know more...

Subscribe to this blog

Subscribe to full feed RSS
What is Daily Market State???
Enter your Email

Preview | Powered by FeedBlitz

How to determine Overbought or Oversold conditions in a Stock

Posted By On 9/23/2009 08:47:00 PM Under

One can use the indicator which tells the overbought and oversold condition of a stock or an index. A number of indicators are available and prominent ones are discussed:
  • Relative Strength Index and is abbreviated as RSI which exactly shows how strongly a stock is moving in its current direction. One can trade with 7 day RSI
  • to make money from market.
  • Another indicator is Stochastic Oscillator whichs hows how a stock's price is doing relative to past movements and can be in form of a Fast, Slow, and full.
  • One can even combine the Stochastics with the RSI indicator which helps one to see RSI change clearly and be called as StochRSI.
  • Williams %R is an indicator which uses Stochastics to determine overbought and oversold levels.
  • We can call an oscillator as an ultimate Oscillator provided it can combine long-term, mid-term and short-term moving averages into one number.
Click Here to Get Free Stock Market Technical Analysis Tips and Charts in Email

Most Read Content