Hi
I am a newbie to the world of Technical analysis and these days I keep checking the various indicators of the companies which are recomended/not recommended by senior members and analysts on various websites. My limited knowledge of TA comes from various tutorials on the internet, which indicate that when RSI is low towards 30-35, MACD crosses/is more than the signal and short term EMA is higher than long term EMA's, its a good
oppurtunity to buy that stock. But I have yet to see all the three singnals together. The EMA and MACD indicators are positive but RSI
is negative and viceversa. For eg. take Ranbaxy, the RSI is below 30 but MACD is below signal and short term EMA is below both other
EMA's while in Cipla, RSI is nearing 70 but MACD is above signal line and short term EMA is about to cross
long term EMA.
I am sure my limited knowledge is at play here. I would appreciate if others can help me understand these indicators and recommend
good sources (internet or books) for improving my knowledge of TA. I use Fcharts and Wallstreet analyzer for viewing charts.
Thanks
Nihar Desai
I am a newbie to the world of Technical analysis and these days I keep checking the various indicators of the companies which are recomended/not recommended by senior members and analysts on various websites. My limited knowledge of TA comes from various tutorials on the internet, which indicate that when RSI is low towards 30-35, MACD crosses/is more than the signal and short term EMA is higher than long term EMA's, its a good
oppurtunity to buy that stock. But I have yet to see all the three singnals together. The EMA and MACD indicators are positive but RSI
is negative and viceversa. For eg. take Ranbaxy, the RSI is below 30 but MACD is below signal and short term EMA is below both other
EMA's while in Cipla, RSI is nearing 70 but MACD is above signal line and short term EMA is about to cross
long term EMA.
I am sure my limited knowledge is at play here. I would appreciate if others can help me understand these indicators and recommend
good sources (internet or books) for improving my knowledge of TA. I use Fcharts and Wallstreet analyzer for viewing charts.
Thanks
Nihar Desai