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Lesson RSI (this is for daily charts)

Video Link: RSI Video Tutorial

RSI is Relative Strength Index and can be summed up this way The centerline for RSI is 50. Readings above and below can give the indicator a bullish or bearish tilt. On the whole, a reading above 50 indicates that average gains are higher than average losses and a reading below 50 indicates that losses are winning the battle. Some traders look for a move above 50 to confirm bullish signals or a move below 50 to confirm bearish signals.

Some things I look for...when a stock goes below 30 RSI ( check for dilution or the company selling shares to cover any debt problems) IF we go below 30 I start to really look at the stock as a buying opportunity, because usually the stock does not stay in the sub 30 RSI very long. When it starts to trend up if it breaks 50 then thats a bullish uptrend on rsi, when we hit 70 I get a little cautious and probably have sold shares to cover my principle investment and hold free shares. IF we hit 90 I AM ALL OUT. WAY OVERBOUGHT.