relative strength index (RSI) update

Just to elaborate on my earlier post on RSI....One of the primary indicators I use for entering/exiting a stock is RSI.

A RSI value below 30 is considered oversold. A Buy signal is the RSI crossing up through the 30 line. A cross above the 50 line would be bullish and a cross above the 70 line would indicate an even stronger trend.

A cross below the 70 line is a sell signal. A cross below the 50 line indicates a bearish signal. A cross back below the 30 line and the stock is oversold once again.

Suppose you buy a stock just as the RSI (considering only the RSI in this case) crosses above the 30 line. You should hold for a sell signal. If the RSI fails and crosses back below the 30 line, that would be a sell signal. If the trend continues and crosses the 50 line, you hold for a sell signal. A cross back below the 50 line would be a sell signal. If the RSI fluctuates between the 50 and 70 lines, continue holding until the RSI crosses below the 50 line. Once the RSI crosses above the 70 line, hold until it crosses below the 70 line.