More from ๐™ฑ๐š›๐š”๐š˜๐šž๐š๐™ถ๐šŽ๐šŽ๐š”๐Ÿ“ˆ

More from Screeners

#RSI is a common indicator which most of us use in the stock market.

This learning thread would be on
"๐™๐™จ๐™š๐™จ ๐™ค๐™› ๐™๐™Ž๐™„"

Like๐Ÿ‘ & Retweet๐Ÿ”„ for wider reach and for more such learning thread in the future.

Also, an investment strategy is shared using RSI in the end.

1/16

Setup 1:

RSI- commonly used to show whether price is overbought or oversold.

General rule:
๐‘๐’๐ˆ > ๐Ÿ•๐ŸŽ -- ๐Ž๐ฏ๐ž๐ซ๐›๐จ๐ฎ๐ ๐ก๐ญ
๐‘๐’๐ˆ < ๐Ÿ‘๐ŸŽ -- ๐Ž๐ฏ๐ž๐ซ๐ฌ๐จ๐ฅ๐

One becomes cautious once price becomes overbought and optimistic when price becomes oversold.

2/16

Let's understand this with an example of Laurus Labs:

1. It was in overbought zone and after a few days when a small dip was seen from 693 to 588 (15% downside)

2. It was in oversold zone and after a few days when a small rally was seen from 59 to 107 (82% upside)

3/16


Well, this looks very easy, but it is not.

When a price is in overbought zone and is in momentum, then it can move up without taking a dip and exiting or shorting stock would prove wrong.

When IRCTC was in overbought zone, price went up from 2718 to 6396 (135% rally).

4/16


Similarly, for oversold stock.

When a price is in oversold zone and is crashing, then it can move down without taking an upmove and buying stock would prove wrong.

When DHFL was in oversold zone, price went down from 126 to 11 (91% crash).

5/16

You May Also Like

1/โ€œWhat would need to be true for you toโ€ฆ.Xโ€

Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?

A thread, co-written by @deanmbrody:


2/ First, โ€œXโ€ could be lots of things. Examples: What would need to be true for you to

- โ€œFeel it's in our best interest for me to be CMO"
- โ€œFeel that weโ€™re in a good place as a companyโ€
- โ€œFeel that weโ€™re on the same pageโ€
- โ€œFeel that we both got what we wanted from this deal

3/ Normally, we arenโ€™t that direct. Example from startup/VC land:

Founders leave VC meetings thinking that every VC will invest, but they rarely do.

Worse over, the founders donโ€™t know what they need to do in order to be fundable.

4/ So why should you ask the magic Q?

To get clarity.

You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.

It also holds them (mentally) accountable once the thing they need becomes true.

5/ Staying in the context of soliciting investors, the question is โ€œwhat would need to be true for you to want to invest (or partner with us on this journey, etc)?โ€

Multiple responses to this question are likely to deliver a positive result.