Short term earning method in share market
RSI (Relative Strength Indicator) defines the path of a stock. If the RSI cross the 30% mark from above and goes up then its time to buy the stock. If RSI crosses the 70% from below then it’s the time to sell the stock. After selling the stock when the RSI is more than 70% wait till the RSI comes below 30%.
You can understand better by viewing the following image.
The above one is a graph of stock price and RSI of a company. I have marked with green circle, green arrow, red circle and red arrow. If the RSI crosses the 30% mark then it’s a buy signal, I have marked it as green circle and a green arrow in the price region. If the RSI crosses the 70% mark then it’s a sell signal, I have marked it as red circle and red arrow. In the above example it made profit in three occasions and no loss. You can also use the same method to earn money in short term. It also works fine for all companies. For this method you need charting software.
To get free charting software follow the link. www.ChartNexus.com
I have seen people using 40% as lower mark and 80% as higher mark. Choose any one 30 – 70 or 40 – 80.
Disclaimer:
I will not guarantee the accuracy, adequacy or completeness of any information. You have to buy stocks at your own risk.
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