Hum jaante hai ke financial markets ko analyse karte samay hum dheron technical parameters aur jargons ka istemal karte hain. Aisa hi ek indicator hota hai relative strength index, or RSI for short. Aakhir relative strength index hota kya hai? Is podcast me hum aapko batayenge!
RSI ek momentum oscillator hai jo stocks ko study karne ke kam aata hai. Let us put this very simply: RSi is an index jo ye pata lagata hai aur measure karta hai ek particular stock kitna strong hai.
Why the name Relative Strength Index? Strength because It indicates the strength or weakness of the stock that it is studying. Relative because uss stock ki strength ko study karne ke liye RSI trend study karta hai in relation to the closing price of that stock in the 14-day trading period.
RSI se hume do baatein pata chalti hain: one, we get to know ke iss particular stock ka price kis rate par gir ya badh raha hai. Number two, hume stock ke price ke rise aur fall ki velocity ka bhi pata chalta hai. Velocity ka matlab hai ke hume na sirf ye pata chalta hai ke price badha ya ghata balki ye bhi pata chalta hai price kitna change hua hai.
RSI ki measurement me hum pichle 14 trading days ke average gains aur losses ko compare karte hain, for that particular stock or security. Knowing the price patterns is crucial information- aur issue hum stock ya security me investment se related decisions le sakte hain.
RSI ki maths ko detail me janne se pehle let us give a little historical background on the index. Welles Wilder naam ke ek enginner-turned-technical analyst ne RSI ka formulation 1978 me kiya tha in his book called New Concepts in Technical Trading Systems and in Commodities Magazine.
RSI ko calculate karne ke liye hum pehle RS yaani ki relative strength calculate karte hain, aur phir RSI ka formula use karke relative strength ke factor ko index me convert karte hai taaki hume 0 se 100 ke beech ki ek figure mil sake.
Ek example ke through samajhte hain ki relative strength kaise calculate ki jaati hai: Assume karte hain ki jis security ki relative strength hum calculate kar rahe hai, it has 8 positive closing days out of the 14-day trading period and 6 days of negative returns.
Sabse pehle un 8 dino ka average gain calculate karenge: 8 dino ke absolute gains total karke unhe 14 se divide karke
Then, 6 dino ka average loss calculate karenge: 6 dno ke absoolute losses total karke unhe 14 se divide karke. Relative strength will then be equal to Average gains divided by average losses. This is simple for the first time. Averages ka computation thoda sa complicated ho jata hai in the next averages you compute.
Here’s how it goes: you take the average gain in 8 up days and multiple it by 13. Agar aaj ki tareekh me gain hua toh use add karein, and then finally divide by 14.
Similarly, for calculating average loss, take the average loss in the 6 down days, multiply it by 13. Agar aaj ki tareekh me loss hua toh use add karein, and then finally divide by 14.
Finally, In order to compute the relative strength, we divide the average gains by the average losses.
RSI is finally computed using the formula: RSI = 100 – (100/1+RS)
Using this formula, hum relative strength factor ko relative strength index me convert kar paate hain, so that the final value is between 0 and 100.
Humen relative strength index calculate kar liya, ab sawaal ye uthta hai ke RSI market movements aur performance ko signal kaise karta hai? Aakhir kaise hum iska use karke behtar investment decisions le sakte hain?
Now, we have an index that falls between 0 and 99. What RSI indicates is ke asset price ke against market me price momentum bearish hai ya bullish? Agar RSI 70 ya usse zyada hota hai, iska matlab hai ke ye stock ya security overbought ya overvalued hai. Bahut jald hi ye reverse ho jayega - this indicates to you ke ye overvaluation thode time baad corrective action ki taraf badhegi.
On the other hand, agar RSi ki value 30 ya usse kam hogi, toh securities oversold ya undervalued maani jayegi. Undervaluation ka matlab hua ke trend reversal hoga aur security ka price badh jayega. So this would be a good time to invest and then later you will get better returns when the price improves.
RSI ko aap stocks ki investment ke liye ek guiding index ki tarah dekh sakte hai! Best of luck with all your investment decisions!