RSI, the stochastic oscillator (KD/KDJ), CCI, Williams %R, momentum and ROC, divergence, RSI range shifts in trends, and choosing settings.
For: learners who want to spot overbought and oversold conditions and shifts in momentum
This course uses ideas from the courses below (optional; you can start right away).
Compare the average gain and average loss over the last 14 candles and squeeze it into a 0–100 reading: what share of the force is pushing up.
Where does the close sit within the recent range? The K and D lines swing back and forth between 0 and 100.
How far has price strayed from its average? CCI uses the mean deviation as its ruler, and a move above +100 is often seen as the start of strength.
The stochastic oscillator's mirror twin, just with the scale flipped: from 0 to −100.
How fast is the price rising? Momentum and rate of change measure "speed", not just direction.
Price makes a new high but the indicator doesn't. Divergence is often an early warning that a trend is tiring, but it needs price to confirm.
In uptrends RSI tends to swing between 40 and 80, in downtrends between 20 and 60. Identify the trend first, then decide where your overbought and oversold lines go.
Period 7 or 21? Thresholds of 70/30 or 80/20? Sweep the settings over the same stretch of market and see how the number and quality of signals trade off.