Flashcards

Busman 142 - CH 3

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Basic assumptions of technical analysis

base predictions on: market value determined by demand and supply which is influenced by various factors (rational, irrational)

RSI Interpretation

>30 = oversold; buy before price rises >70 = overbought; sell before price falls

RSI Calculation

RS = av gain up period/av loss down period RSI= 100 - (100/1 RS)

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