See looking at the charts, no one can say thar what the stocks will do next. A lot of people do technicals analysis by keeping a lot of signals. For me, I cannot read the chart much but what I know is that there are 2 popular signals which if combined can give Mr a buy and sell signal.
For this I use two of the most reliable indicators – the RSI (Relative Strength Index) and SMA (Simple Moving Average) and combine both of them to get a RSI and SMA crossover technique which actually helps me to identify the stocks to buy in my portfolio.
RSI or Relative Strength Index is a momentum oscillator indicator which actually shows if the stock is in Overbought Zone or OverSold Zone. It's value ranges from 0 to 100. SMA is a simple Moving Average line which shows the average of the stock price for the selected time period like 50 Day or 200 day etc.
So if we combine the two indicators, that can help me to identify if the stock is in momentum and will rise or if the people are selling and the stock will go down. You will be able to see the strategy in action in the Video. Bit in simple terms when the 14 Day RSI goes above the 14 Day SMA (applied on RSI) it is a buy whereas when the 14 Day RSI goes below the 14 Day SMA (applied on RSI) then sell it.
This can br applied in Stocks, ETFs as well as in crypto. I have not applied in Crypto yet, but thinking of applying it and see how it goes. This is how I am selecting my stocks now. I know not all the strategy is perfect but it's better to stick in one strategy and then see the result how it goes.
Posted Using InLeo Alpha
