How to Identify Stocks to BUY or SELL using Relative Strength Index (RSI)

How to Identify Stocks to BUY or SELL using Relative Strength Index (RSI) | RSI Trading Strategy

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Күн бұрын

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In this video, we explore Relative Strength Index or RSI - a powerful tool that can help you navigate the ups and downs of the stock market with precision. RSI, also known as the Relative Strength Index, ranges between 0 and 100. If the RSI is above 70, it indicates that a stock is overbought, and it might be a good time to consider selling. Conversely, if the RSI is below 30, it's a sign that the stock is oversold, which could be a buying opportunity. For Asian Paints recently moved from an overbought state to oversold territory, signaling a buying opportunity after a 15% drop in the last 3 months.
In the video, I also explain how to calculate a 14-day RSI using a 5-step process for a stock like HDFC Bank although the relative strength indicator can also be applied to broader market indices like the Nifty50. To wrap things up, we also delve into the advanced concept of RSI divergence using the real-life example of Reliance Industries
👉 Video Chapters:
00:00 Introduction to RSI Trading Strategy
00:55 What is Relative Strength Index
03:32 Calculation of RSI
06:18 RSI Failure Swing
08:26 RSI Divergence Trading Strategy
#rsi #rsitradingstrategy #relativestrengthindex #technicalindicators
Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links

Пікірлер: 134

@SasiGudla 8 ай бұрын

RSI may be the Secret Keepers of the mark sentiments but Shankarnath is our open secret keeper of where to educate oneself properly. I just can't thank you enough for being the Dhronacharya (without seeking a thumb but seeking only thumbs up) of all the Ekalavyas of investment out there.

@shankarnath 8 ай бұрын

Thank you very much for your kind appreciation and continued support 🙌

@sumanmazumder2127 8 ай бұрын

Everyone teaches RSI, but no one talks about RSI divergence. Thanks for this information. I have learned a lot from you Shankar sir.

@shankarnath 8 ай бұрын

My pleasure. I'm glad to hear that

@pranzy1 8 ай бұрын

A novice learner, following rsi since months to track , this video increased my knowledge n confidence. Thank you for such a gr8 informative video

@shankarnath 8 ай бұрын

Glad to hear that. All the very best!

@prajvalg7183 8 ай бұрын

Can't thank you enough Shankar . Recently got to know about RSI,I was searching for a better source to understand more and here you are with it . Thanks a lot Shankar

@shankarnath 8 ай бұрын

Most welcome. I'm glad you found it useful

@Jyyo 8 ай бұрын

Congrats on a year completion Shankar! Go ahead and capture a wider and more loyal audience base. Thank you for your work and stay blessed 😇

@shankarnath 8 ай бұрын

So nice of you. Thanks for your continued support and encouragement for many months. I love the phrase "loyal audience" .. and that's what will be my focus for this coming year as I try different formats. Look forward to your feedback as always.

@sandipghiya3493 8 ай бұрын

Absolutely perfect. Data Collections , Presentation, Interpretation and Dedication bring lots clarity on your subject.

@shankarnath 8 ай бұрын

Many thanks! Glad you liked it 🙌

@lakshnaramesh9733 8 ай бұрын

Hii, Shankar Nath sir I'm 19 y.o from South India, started investing in the stock market when i was 17 y.o Subscriber & regular viewer of this channel since it had under 2,000 subscribers, came to know about you as i was watching ur videos in ET Money, loved your content a lottt, if u increase the frequency of your video uploads will be too great to know more abt finance Kindly consider my request in making a complete series on technical indicators & parameters like, MACD, Slow Stochastic (Momentum Indicator), Trendline, Super Trend, Support & Resistance, Pivots, Fibonacci & other technical formations like: Flag pattern, cup & handle, descending & ascending triangle, etc....

@shankarnath 8 ай бұрын

Thanks for the suggestions

@rajpachori 8 ай бұрын

Another piece of a marvelous video! More power to you. Thank you for very much 🙏

@shankarnath 8 ай бұрын

So nice of you. Most welcome 🙌

@PratikRamanuj 8 ай бұрын

Very lucid and informative 😀. Thank you for such a knowledge bursting video 😊

@shankarnath 8 ай бұрын

My pleasure, glad you found it useful

@phantommenace9047 8 ай бұрын

Congratulations for 100 K subscribers.

@shankarnath 8 ай бұрын

Thank you so much 😀

@pradeepvm 5 ай бұрын

Thank you for this and other well researched topics presented in such a lucid manner. 🎉

@shankarnath 5 ай бұрын

You're very welcome! Happy to know that you are finding these useful

@drthiruna 8 ай бұрын

You are a great teacher. Hats off to you

@shankarnath 8 ай бұрын

Thanks a lot. I appreciate that!

@vepeducate 8 ай бұрын

highly informative and useful video. Thanks Shankar. Appreciate your sincere efforts sir.

@shankarnath 8 ай бұрын

Thank you very much for your kind words

@Rockfort_dinesh 8 ай бұрын

Hi Sankar sir, Very good explanation. We learn more N more technical knowledge in stock market. Keep doing rocks. After 2 decades most of us sitting with good wealth. Thanks a lot. 👍😍🙏

@shankarnath 8 ай бұрын

Most welcome. Glad you found it useful

@ravichandar5426 8 ай бұрын

excellent video as always!!

@shankarnath 8 ай бұрын

Glad you enjoyed it!

@sakthivelannatarajan8487 8 ай бұрын

Your thumbnails and the content never disappointed us

@shankarnath 8 ай бұрын

Thank you!

@bubbudubbu5515 8 ай бұрын

Thanks for the concise and precise video! You earned my sub! I wish you had also covered hidden divergences, which i have never been able to understand.

@shankarnath 8 ай бұрын

Most welcome and thanks for the suggestion

@narendrasinghdhami3042 8 ай бұрын

Congratulations for your first 100K 📈

@shankarnath 8 ай бұрын

Thank you so much, Narendra 😀

@mrmhs143 6 ай бұрын

I liked the explaination verry much. Thank you and bring more on trend reversal.

@shankarnath 6 ай бұрын

Thank you very much!

@athulp6520 8 ай бұрын

Congratulations 👏👏 100 k 🤘

@shankarnath 8 ай бұрын

Thank you very much 🙏

@ravindrasonawane8990 8 ай бұрын

I liked much about your English language fluency Nice all

@shankarnath 8 ай бұрын

Thank you!

@ayushkaushik9637 8 ай бұрын

Gem of a video

@shankarnath 8 ай бұрын

Thank you very much 🙌

@SubhrajitGhadei 7 ай бұрын

Hi Shankar, as usual a really good and educational video. I would sincerely request you to do a similar video for MACD and also if you can include the MACD parameters mentioned in screener, that would be really helpful. Again, I thank you from the bottom of my heart for helping all of us.

@shankarnath 7 ай бұрын

Thanks for the suggestion, I'll try

@ZubairKhanThe1 8 ай бұрын

Wonderful Video

@shankarnath 8 ай бұрын

Thank you very much!

@prathapjeer7667 8 ай бұрын

Great Work Sir.. 👏

@shankarnath 8 ай бұрын

Thanks a lot

@ananddutta 8 ай бұрын

Awesome video

@shankarnath 8 ай бұрын

Thanks!

@dsaha7700 8 ай бұрын

Shankar ji , Many thanks and also teaching on various aspect of RSI including classic divergence topic. there is also called Hidden Divergence and it can be a part 2...

@shankarnath 8 ай бұрын

Most welcome sir. I did read about hidden divergence .. felt it was a bit too much so yes, this will have to come in part 2. Thanks for the suggestion

@SHARKakaTAH 8 ай бұрын

Advance wishes to go past 100,000 subs🎉

@shankarnath 8 ай бұрын

Thank you very much 🙌

@reyansharma8363 8 ай бұрын

Great sir

@shankarnath 8 ай бұрын

Thanks

@jayeshparmar1554 8 ай бұрын

Nicely Informative and knowledgeable Video ❤ Pls. Also cover with Stochastic RSI Sir😇

@shankarnath 8 ай бұрын

Thanks 🙌 . I'll try

@Professor2098 8 ай бұрын

Amazing research, you make the topic very easy to understand. Thanks a lot. I have a question Can it be used for ETFs?

@shankarnath 8 ай бұрын

Most welcome. Yes, the RSI concept works on stocks, ETFs, even mutual funds (using NAVs), currency, commodity prices and many such financial instruments

@adagoudamakannawar4933 8 ай бұрын

Very informative video.

@shankarnath 8 ай бұрын

Glad it was helpful!

@vinodk5049 8 ай бұрын

Congratulations Shankar on reaching 100K mark. Looking at channels like yours, I still have a hope for this world. Very happy to see 'great' content being recognized by audience. Having said that, one question w.r.t. RSI. When I change the timeline from 5years to 3 months, the RSI number changes. Any guidance/suggestions?

@shankarnath 8 ай бұрын

Thank you very much Vinod ji for your kind appreciation and encouragement. With re RSI, I believe this is a particular point in time metrics i.e. it keeps on changing on a daily basis. I'm not sure a timeline like 5 years or short duration like 3 months is likely to have an impact. My readings show that the popular RSI is based on 14-day data with other alternatives being 9-day and 25-day. Ofcourse, may I request you to check this from other sources aswell as I'm just a beginner to technical indicators

@vinodk5049 8 ай бұрын

@@shankarnath I shall share the example and also research potential reasons. By the way, I use your guide on Peter Lynch screener and the stocks that came out have done very well in several months. Of course I do additional checks w.r.t the underlying fundamentals, but the screener does give a good short list of good candidates. Thank you for that video!

@shankarnath 8 ай бұрын

@@vinodk5049 Thank you very much. I'm glad you found it useful

@nabeelyahiya 8 ай бұрын

Good one👍

@shankarnath 8 ай бұрын

Thanks ✌️

@deveshmaheshwari6598 8 ай бұрын

very informative

@shankarnath 8 ай бұрын

Glad you liked it

@pawanchoubay8578 8 ай бұрын

Nice explanation

@shankarnath 8 ай бұрын

Thanks for liking

@shailendragujarathi9211 8 ай бұрын

As usual... Perfect One... One question.. how can we automate to get the signal based on RSI moving up & down so we don't miss the opportunity

@shankarnath 8 ай бұрын

Thanks. I havent tried it myself but Sentinel (Zerodha) allows for many alerts. Pls try that out. Alternately, look at www.streak.tech in case that helps .. check with their customer support if they can offer the feature you desire.

@guptraja 8 ай бұрын

Good video. Can you pls have a similar explanation for MFI and how can one use RSI and MFI together for better decision making? Thanks.

@shankarnath 8 ай бұрын

Thanks for the suggestion. I'll try

@mdrafeek786 8 ай бұрын

Thank you for valuable input. I have two questions 1. Does the RSI keep changing everyday or what's the frequency that RSI will update? 2. Where can we check historical RSI values to make buy or sell decision?. Because i want to buy stocks that whose RSI keep increasing till one point

@shankarnath 8 ай бұрын

Hi, 1. Yes, RSI changes everyday 2. Please use tradingview, investing.com, screener.in or similar platforms.

@kumarx68 4 ай бұрын

The perception has changed now. It is 60/40 rule now. A stock trading above 60 is bullish and can stay there for long. Similarly stock trading below 40 is bearish and can stay below 40 for long. This is Andrew Cardwell’s principle. What is your thought on this.🎉

@BeNOone902 8 ай бұрын

Gratitude

@shankarnath 8 ай бұрын

🙌

@anujarora2537 8 ай бұрын

Hi Shankar.. I have recently started following your videos and thanks for putting together this content. 1 question on RSI - Do you suggest RSI for short term trades or can it be used for identifying long term investing opportunities as well?

@shankarnath 8 ай бұрын

Welcome aboard! RSI is an oscillator i.e. the number keeps on going from up and down between 0 and 100. Case in point is Asian Paints (an example I took in this video) where the RSI was above 70 in July and below 30 in October. This helped us with a probable time to enter and exit a stock and had no semblance to long-term investability of Asian Paints. Personally, I think RSI is helpful more as an entry/exit point determinant and not as a long-term investing strategy

@anujarora2537 8 ай бұрын

You should probably make a video on leading and lagging indicators and if its possible to use a combination of those to enter markets with more certainty.. Just a suggestion!!

@thara-ot3fx 7 ай бұрын

@@anujarora2537my suggestion is you can use RSI for entry level at 30 to buy any stock , hold it for long term investment.

@thara-ot3fx 7 ай бұрын

@@shankarnath more precisely RSI can be used for swing trading. Buy at 30 over bought zone and sell at over sold 70 zone

@deivas1425 8 ай бұрын

Shankar Ji, Awesome content 🙂. We need to check it in daily/weekly/monthly - please check and confirm. thanks. I hope we need to check for daily time frame.

@shankarnath 8 ай бұрын

Thank you. 14-day RSI is the most popular indicator.

@amitarora1975 8 ай бұрын

Dear Shankar, many thanks for your kind efforts. As always much helpful. Shouldn’t the Alpha considered after taking STCG? Thoughts? Regards

@shankarnath 8 ай бұрын

Most welcome. Can you elaborate the question with an example? I am unable to place the context

@amitarora1975 8 ай бұрын

@@shankarnathin your video you showed the simulation of Asian Paints and mentioned the difference you got by Holding vs. Selling/buying based on RSI indicators. This difference was the Alpha. My query was shouldn’t this Alpha be calculated after factoring the STCG on account of buying/selling frequently? I hope this clarifies. Many thanks again. Regards

@shankarnath 8 ай бұрын

Hi, thanks for claritying. It's an interesting question because when we think a layer deep, then this can be applied to every financial instrument. For example - a bank says 8% interest rate on FD but tax is definitely payable on the interest, so shouldn't it be saying 5.5%? Likewise, when a mutual fund reports a 3 year performance then instead of saying 15%, it should be factoring in the LTCG somewhere. And so on. Personally, I have rarely come across an instrument that declares returns on a post-tax basis so maybe it's industry practice .. and on a deeper level I can understand why, because -- taxation rates are different, LTCG has a 1 lakh exemption, the cap gain tax changes per instrument, some users have CG setoffs, some businesses take trades as capital gain while others apply it as business gain etc.

@boyfromthemountains 8 ай бұрын

Hello Shankar sir, I have been a sub for a long time now, I would request you make a video on how can one generate returns in falling markets without directly participating in trading. Like funds or any instrument that would benefit from falls and volatility.

@shankarnath 8 ай бұрын

Thank you for your continued patronage. If markets are falling or likely to fall and the objective is to generate returns from one's capital, then perhaps equity is not the right choice. A debt instrument or funds like an arbitrage fund can ensure some semblance of returns here. There's an article that came on Mint on this same question (www.livemint.com/money/personal-finance/which-mutual-fund-is-suitable-for-fresh-investors-in-falling-stock-market-11671851807790.html) .. and the expert there suggested hybrid funds.

@dextor08 8 ай бұрын

Thanks Sir.. usually i listen to video while working but i can't do this to your video..

@shankarnath 8 ай бұрын

Most welcome. I tend to use audio and visual clues in my videos like tables, charts, newspaper clippings, text which is different from what I am saying etc. Even some of my close friends have told me that my videos can't be treated as a podcast & they can't listen to it when going to work. From my point of view, a video is an AV tool and needs to have audio and visual clues.

@dextor08 8 ай бұрын

@@shankarnath Sir, i just wanted to say that your content is so informative and interesting to me that i do like to watch your video as i do not want to miss anything. The topic you choose are also very interesting and the knowledge you gave is awesome. Thank you sir.

@shankarnath 8 ай бұрын

@@dextor08 Most welcome.

@kumarx68 4 ай бұрын

But the current concept of RSI is 6❤0/40 rule and it can stay for extended period above 60 or below 40 when it is extremely bullish or bearish as the case may be. What is your opinion. This formula is as per Andrew Cardwell.

@mohan7642 8 ай бұрын

Your T-shirt is pretty good Shankar, which brand it is ?

@shankarnath 8 ай бұрын

Thanks. It's Van Heusen

@murugansundaram2620 6 ай бұрын

how is this RSI based investing different from Momentum investing?

@abhishekpurwar9932 8 ай бұрын

Can you pls make a detailed video on SLPW system of NPS which is recently launched giving details on charges and process to avail and taxation. It will be very useful to all as your videos are deep and useful .

@shankarnath 8 ай бұрын

Thanks for the suggestion

@jacobkowski7705 5 ай бұрын

Where do I get RSI chart in Yahoo Finance? I can't find it

@bimalupadhyaya9875 8 ай бұрын

👍

@holatravelsvlog2114 8 ай бұрын

What time frame charts suppose to use? Weekly or daily? Thank you

@shankarnath 8 ай бұрын

I use daily frequency.

@holatravelsvlog2114 8 ай бұрын

@@shankarnath what about investment sir? Still need to use daily frequency? Thank you

@saralshaju 8 ай бұрын

Is it advisable to do sip or pay via lumpsum mode ? There is a delay while doing investment via sip because of the banks payment gateway delay it seems. Many times I had noticed sip is not accepted by mutual funds on the same day where as lumpsum payment is getting updated with the fund house on the same day if we are paying before the cut off time … Can you please look into it and tell us.. if the market is down and nav is low for the day and if we are doing investment before the cut off time via lumpsum, fund house will accept the fund same day .. but for my monthly sip fund house is not accepting the payment same day .. may be becoz in sip fund house is not getting the payment same day before the cut off time ..

@shankarnath 8 ай бұрын

Hi, if time is of the essence then you can go for an ETF. This way, you won't have timing issues on account of money hitting the fund house account on time

@alexstanley4684 8 ай бұрын

Sir if possible can you make a video on investing for child through plans like HDFC Sanchay Par Advantage and child plans like SBI Smart Scholar vs through mutual funds

@shankarnath 8 ай бұрын

I can try. Thanks for the suggestion

@zarorules 8 ай бұрын

Okay here goes my secret: just change the time frame to weekly and analyse. see the magic!!!

@karthekeyansubramanian.v3489 8 ай бұрын

❤

@ajaychugh1 8 ай бұрын

Thanks brother. Can you upload a video on ALPHA and BETA also

@shankarnath 8 ай бұрын

@@ajaychugh1 Most welcome Ajay ji. I personally dont use Alpha and Beta. Are you using it or have seen applications of it? If yes, please share as it will help in building context

@ajaychugh1 8 ай бұрын

@@shankarnath No sir. I haven't used it so far. But saw some videos on youtube about the same. I will share the link

@bikashkumarmallik7776 8 ай бұрын

Try to send through UPI asking me my email password for which unable to do that.

@shankarnath 8 ай бұрын

Hello Bikashji, is this message addressed to me? Didn't understand

@bikashkumarmallik7776 8 ай бұрын

While making payment asking my email password is it okay@@shankarnath

@shankarnath 8 ай бұрын

I'm not sure. Sorry!

@gundahearsyou08 8 ай бұрын

Good info. Ideally you should have shown how to see RSI on charts on a sample stock. It would have made video full pledged.

@user-re1cy2yv9i 8 ай бұрын

Sir in earlier video you said you have a fd of 75 lakhs is it safe to put fd in small finance Bank sir

@shankarnath 8 ай бұрын

Oh, can you pls tell me which video? Kindly paste the link here in the comments and let me know the timestamp. Thanks!

@akhilsingh133 25 күн бұрын

Do these Ratios apply to long term investors as well ?(More than ten years) I see a lot of stocks with good valuations but high RSIs and this gets me confusing whether to buy or wait for RSI to come down

@shivam00668 8 ай бұрын

लेकिन बेकटेस्ट में rsi का सक्सेस रेट मात्र 15% है , भरत झुनझुनवाला ने इस पर प्रॉपर रिर्सच वीडियो बनाई है

@yaniv9 3 ай бұрын

Hi. I’m just wasting time watching all financial videos on KZfaq. I’m not able to take decisions on investments. Kindly make a paid subscription and I’ll join.

@shankarnath 3 ай бұрын

Thanks for the suggestion