The Relative Strength Index, or RSI, is a type of Momentum Oscillator and an example of lower study- such as volume. The Tradespoon chart below depicts RSI. It can be used as Support and Resistance Levels:

  • A Buy Signal is indicated when the RSI moves off very low levels.
  • Sell Signal is indicated when you can set your profit target at the upper boundary of RSI, usually around 70.




Moving averages

The Moving Average (MA) the most commonly used trend-identifying tool and smooth trend lines to avoid the static of erratic price movements. Moving Averages draw information from past price movements to calculate their present value and only show trend changes after the market has begun to decline or rise. Moving Averages can be applied as Trend Indicators and possible indicators of Support and Resistance Levels.




Example Use Case

  • Start by selecting a trending stock to analyze.
  • Select a time frame for the moving average that reflects your investing style.
  • Buy when the shorter moving average crosses above the longer moving average.
  • Sell when the shorter moving average crosses below the longer moving average.
  • Set stops below the longer average for your long positions.
  • Watch for confirmation from candlesticks and Tradespoon’s Support and Resistance predictions.


I. Tradespoon 101

II. Advanced Options Strategies

The Greeks

III. Technical Analysis

Introduction to Technical Analysis


Chart Patterns

Reading Predictions

IV. Developing a Trading Plan

Portfolio Management


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