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Old 01-29-2007, 07:45 AM
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Re: Overbought Or Bulls Getting Stonger.

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Frm:gandhiadg;


As A Beginner To Technical Analysis I Would Like To Request A Clear Understanding And Insight From The Experienced Traders
On The
The Interpretations Related To Oscillatior Position For Short Term Trading Purposes.

For Example When Rsi Is In Overbought Zone And The Reading Increasing From 60 To 75 To 81 And So On.
Now Is It An Overbought Position For The Market To Reverse Or Bulls Are Getting Stonger. Similarly For Oversold Position When The Reading Drops Below 30 And Continues To Do, Is The Market Preparing To Reverse Or The Bears Are Getting Stronger.

What Could Be The Practical Guideline To Decipher Between The Two With A Good Level Of Probabilitly To Enable Taking Better Trading Decision

Thks In Advance.

Gandhiadg.

Well Gandhiadg,

those are some good questions but they could certainly end up with some subjective answers. Let's try to clear it up a bit...When you say short term trading are you referring to a swing approach? And secondly there are about 20 different answers to those questions depending on the type of chart you were to look at ( ex. price trending, rangebound, and daily, weekly, intraday etc etc)

If you could be just a little more specific I could probably offer you more help

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