Saturday, December 11, 2010

Relative Strength Index

Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It oscillates between zero and 100. RSI is considered overbought when above 70 and oversold when below 30. More details from StockCharts.com

In my technical analysis, I use RSI(4) together with other indicators like Slow Stochastic.

Team Player Award

KY was among the 3 children who won the Team Player Award in her K2 cohort. Her teacher said that her friends like to pla with her as she is always cheerful and accommodating.

I told Doe, "see she's much like me."

Stochastic Oscillator

The Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. It doesn't follow price or volume, but follows the momentum of price. The momentum changes direction before the price. It is useful in identifying overbought and oversold levels. More details from StockCharts.com.

In my technical analysis, I use the Slow Stochastic with %K=8 and %D=3, together with other indicators like RSI. I use it to identify a break above 20 (upturn signal) and below 80 (downturn signal). A popular %K (aka look-back period) is 14, but I prefer a shorter look-back of 8 which I find gives an earlier indication.