Price indicators

           Relative St rength Index (RSI): The RSI measures t he rat io of up-moves t o down-moves and normalizes t he calculat ion, so t hat  t he index is expressed in a range of 0-100. If t he RSI is 70 or great er, t hen t he inst rument is assumed t o be overbought (a sit uat ion in which prices have  risen  more  t han  market expect at ions). An RSI of 30 or less is t aken as a signal t hat t he inst rument may be oversold (a sit uat ion in which prices have fallen more t han  t he  market expect at ions).
St ochast ic oscillat or: This is used t o indicat e overbought / oversold condit ions on  a  scale  of  0-100%.  The  indicat or  is based  on  t he  observat ion  t hat  in  a st rong up-t rend,  period closing prices t end t o concent rat e in t he higher  part of t he period's range. Conversely, as prices fall in a st rong down-t rend, closing prices t end t o be near t he ext reme low of t he period range.  St ochast ic calculat ions produce t wo l ines, %K and %D, t hat are  used  t o  indicat e overbought / oversold  areas  of   a  chart .   Divergence  bet ween  t he  st ochast ic l ines  and  t he  price  act ion  of   t he  underlying  inst rument   gives  a  powerful t rading signal.