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RSI trends

  • By Cory Mitchell,
  • Stocks and Commodities Magazine
  • Technical Indicators
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What does the behavior of the relative strength index within a trend tell you about the strength of the trend? While one common method uses divergence between the relative strength index (RSI) and price, we can go beyond that and find out if a trend is likely to continue. We can do so by looking at certain RSI levels contained in a trend; this provides us with valuable information for making trades within the current trend. Watching for breakouts of these RSI levels can also provide us with confirmation for what is happening with price. Read on to learn more...

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1. Active Trader Services are available to investors in households that place 120 or more stock, bond, or options trades in a rolling twelve-month period and maintain $25K in assets across their eligible Fidelity brokerage accounts.

Technical analysis focuses on market action – specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering what stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.

Article copyright 2012 by Technical Analysis Inc. Reprinted from the April 2010 issue with permission from Stocks & Commodities Magazine.
The statements and opinions expressed in this article are those of the author. Fidelity Investments cannot guarantee the accuracy or completeness of any statements or data.
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