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Investor Education Momentum Indicators Stochastic Relative Strength Index

Financial Indicator

Equity momentum-indicators tool provides you with the Momentum Indicators execution environment for running Stochastic Relative Strength Index indicator against Equity. Momentum indicators of Equity are pattern recognition functions that provide distinct formation on Equity potential trading signals or future price movement. Analysts can use these trading signals to identify current and future trends and trend reversals to provide buy and sell recommendations. Please specify the following input to run this model: Time Period, Fast-K Period, Fast-D Period, and Fast-D MA.
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The Stochastic Relative Strength Index compares Investor Education closing price in relationship to its price range over a given period of time. When the Investor Education SRSI reaches up above the upper threshold line, the equity is considered overbought with anticipation a reversal of Investor Education trend.. View also all equity analysis

Stochastic Relative Strength Index In A Nutshell

These are both reliable technical indicators, but the RSI appears to work well in trending markets while stochastic works well in sideways markets. They tend to plot similar data, but how they calculate that data is different and it may impact which one you prefer using.

If you are familiar with indicators or oscillators, then you will know stochastic and the relative strength index are tools on their own. Oscillators are used to help find direction and when to enter and exit the market.

Closer Look at Stochastic Relative Strength Index

When you plot these on your chart, you will find that they run from 0 to 100, indicating overbought when near 100 and oversold with nearing 0. The stochastic RSI uses 0 to 1 and another below .2 is at the low end of trading and .8 is at the high end.

With that in mind, if you have not read the individual indicators and know what they mean, here at Macroaxis we have information on each tool and it is highly recommended that you understand what each of them does. Together, they can be a powerful tool and allow you to time your buys and sells better, leaving you with a potentially greater return on your investments.

Be sure to test this on a demo account first and if you are still searching for more information, the Internet has many articles on this tool as it is widely known and used throughout the investing and trading community.

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