CMC Markets Singapore Understanding the RSI

Embed Size (px)

Citation preview

  • 8/13/2019 CMC Markets Singapore Understanding the RSI

    1/8

    Understanding the RSI

    THE CMC MARKETS TRADING SMART SERIES

  • 8/13/2019 CMC Markets Singapore Understanding the RSI

    2/8CMC Markets | Understanding the RSI 2

    Indicators are one of the favourite

    confirmation tools used by traders and

    investors. They allow you to garner

    extra insight as to where shifting trendsin momentum may occur and help you

    make decisions as to when prices may

    be overbought or oversold. In general,

    however, indicators can be deceptive

    in the messages they provide. This is

    because that while they appear to beextremely simple in the way theyre

    applied, this actually requires a great

    deal of care or you could find yourself in

    a position where your interpretation is

    greatly mistaken.

    As part of our indicators toolkit we cover

    one of the most popular indicators: the

    RSI, or Relative Strength Index. Well

    look at how this can help you when you

    include CFDs in your trading portfolio.

  • 8/13/2019 CMC Markets Singapore Understanding the RSI

    3/8CMC Markets | Understanding the RSI 3

  • 8/13/2019 CMC Markets Singapore Understanding the RSI

    4/8CMC Markets | Understanding the RSI 4

    The RSI in action

  • 8/13/2019 CMC Markets Singapore Understanding the RSI

    5/8CMC Markets | Understanding the RSI 5

    Using the RSI with other tools

    Beware of the RSI in strong trends

  • 8/13/2019 CMC Markets Singapore Understanding the RSI

    6/8CMC Markets | Understanding the RSI 6

    Divergence in action

  • 8/13/2019 CMC Markets Singapore Understanding the RSI

    7/8CMC Markets | Understanding the RSI 7

    The RSI can form patterns too

    Breakouts are of interest to many traders

  • 8/13/2019 CMC Markets Singapore Understanding the RSI

    8/8 CMC Markets Singapore Pte. Ltd., Reg. No./UEN 200605050E. All rights reserved August 2011.

    cmcmarkets.com.sg

    The information contained herein / presentation (the Information) is provided st rictly for informational purposes only and must not be reproduced, d istributed

    or given to any person without the express permission of CMC Markets Singapore Pte. Ltd. (CMC Markets).

    The Information is not to be regarded as an offer, a solicitation or an invitation to deal in any investment product or an advice or a recommendation with respect

    to any investment product, and does not have regard to the specific investment objectives, financial situation and particular needs of any specific person.

    Contracts for Dif ference and leveraged foreign exchange trading involve the risk of sustaining substantial losses and are not suitable for all investors. You should

    independently consider the Information in the light of your investment objectives, financial situation and particular needs and, where necessary, consult an

    independent financial adviser before dealing in any investment product. Risk warning/disclosures and other important information are available at our website:

    www.cmcmarkets.com.sg or by contacting us at + (65) 6559 6000.

    CMC Markets does not warrant the accuracy, completeness, suitability, currency or reliability of the Information. CMC Markets accepts no liability for loss

    whatsoever arising from or in connection with the use of or reliance on the Information. It should not be assumed that any product evaluation or analysis

    techniques presented herein, if relied upon, will guarantee profits or gains or will not lead to losses. Any graph, chart or any device set out or referred to herein

    / presentation possesses inherent limitations and practical difficulties with respect to its use, and cannot, in and of itself, be used to assist any person to

    determine and/or to decide which investment product to buy or sell, or when to buy or sell them. Past performance is not necessarily indicative of future

    performance, result or trend.

    CMC Markets does not and shall not be deemed, and accepts no obligation, to provide advice or recommendation of any sort in relation to any investment

    product. CMC Markets may or may have expressed views different from the Information and all views expressed are subject to change without notice. CMC

    Markets reserves the right to act upon or use the Information at any time, including before its publicatio n herein.

    CMC Markets Singapore Pte. Ltd.

    50 Raffles Place #14-06

    Singapore Land Tower

    Singapore 048623

    Phone: 1800 559 6000 (local) or +65 6559 6000 (international)

    Fax +65 6559 6099

    Email: [email protected]