; relative strength index: was first applied to futures trading by Welles Wilder. Later, it was found that in many technical analysis, RSI theory and practice were extremely suitable for short-term investment in the stock market, so it was used to measure and analyze the rise and fall of stocks. As the RSI index is very practical, it is loved by many investors. The index is designed to reflect the strength of the price trend in three lines. This kind of figure can provide investors with operational basis and is very suitable for short-term operation.

. It can reflect the prosperity of the market in a certain period of time. Generally, it consists of 6-day, 12-day and 24-day lines, with the value between 0-100. According to the normal distribution, the RSI value mostly changes between 20-80. Generally, more than 80 is considered that the market has reached the overbought state, so the market price will naturally fall and adjust. When the RSI falls below 20, it is considered oversold, and the market price will rebound.

      1. Short term RSI line is below 20, It is a buying signal when crossing long-term RSI line from bottom to top.

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        2. RSI index form and Application; In the long market, market sentiment is gradually increasing, and the stock price shows a trend of top to top and bottom to bottom; at this time, RSI fluctuates more than 50 and is in a strong region. Therefore, the RSI value is better than 50 when choosing stocks. Line height: 3EM; ">; In the short market, the market sentiment is low and the trading is light. The stock price shows a trend of low top to bottom ratio and low bottom to bottom ratio. At this time, RSI fluctuates below 50 and is in a weak area. At this time, it is recommended to wait and see. Ight: 3EM; ">         Deviation between RSI index and stock price. The stock price reaches a new high, while the RSI index does not reach a new high, which is called top deviation, which means that the momentum of the short-term rise of the stock price is weakening, and this is the time to sell.

        4. Bottom deviation

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        5. M-head form

nbsp;       this is a variation of top deviation, indicating that the stock price will fall back in the short term and sell out below the neckline. If the neckline is drawn back, it is the second time to sell.

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. Form

nbsp;   &Nbsp;   indicates that the stock price bottoms out and picks up, breaking the neckline or stepping back on the neckline to buy. Application of trend line

nbsp; &Drawing a trend line in the K-line chart to analyze and judge the trend of the stock price, as well as finding the buying and selling points through the trend line, is a classical method commonly used in technical analysis. Because the trend line can reflect the precise trading point, it is deeply valued and loved by people. This method can also be used in RSI index, and the effect is amazing.