Divergence in RSI: Dictionary definition of divergence states that when two things act oppositely it is called divergence. In case of RSI a divergence is seen when prices and their respective RSI move in opposite direction. If the price is …

Zone Shifts in RSI: In a traditional market the extreme levels of RSI are 70 (overbought level) and 30 (oversold level). Thanks to Andrew Cardwell and his research which gave birth to a new concept called zone shifts, which help …

Method 1: When RSI moves into overbought zone (> 70) and then reverts back below overbought zone (<70), then initiate a short trade.   Method 2: When RSI moves into oversold zone (<30) and then reverts back above oversold zone …

Bollinger Bands were introduced by John Bollinger, a technical analyst. It is a combination of fundamental and technical analysis called as relative analysis. Bollinger Bands consists of a 20-day simple moving average of close prices and a 2-Standard deviation of …

How to interpret MACD? As discussed in the previous article, MACD has 3 parts MACD Line – Difference of SLOW and FAST Averages. I.e; (12-Day – 26-Day) Signal Line – 9-day Exponential Moving Average of MACD line. MACD Histogram: MACD …

MACD: MACD stands for Moving Average Convergence Divergence and was created by Gerald Appel in 1970’s. MACD uses Exponential moving average for its calculation purpose. Instead, it uses the difference between Fast Exponential moving average and slow Exponential moving average. …

You can download the following excel sheet, to take a look at how RSI is calculated. RSI calculation uses close price of a stock. “Column E” has all closing prices. “Column F” calculates change in price by subtracting current row …