Relative Strength Index (RSI) is a technical indicator developed by J. Welles Wilder. RSI is a value from 0 to 100 and when RSI rises, it indicate strength, and when RSI drops, it indicates weakness of a stock. When the RSI value rise above 70, the stock is consider overbought, and when RSI drop below 30, the stock is consider oversold and you should add them to your watchlist.
The following is an ENOC chart. Noticed the RSI was dropping and bounce back without touching 30. This is a bullish signal, and in both cases below, the stock rise after RSI bounce from 30.
How to scan for RSI Pattern
You can use our RSI screener to scan the stock market for RSI patterns.
1. Go to stock screener.
2. Select RSI value
3. Hit the submit button and you will get a list or stocks base on RSI.
Like any other technical indicator, RSI should be use along with 2 or 3 other indicators for best results.