values for the ticker symbols listed in the text box below. The "Set to Cara100" button will replace the contents of that box with the
, for those who wish to track the RSI values of that index. The "Clear" button will clear the list. Finally, the "Go!" button will retrieve the RSI values from the server.
While other factors must be considered, the most basic use of the RSI values is to determine the best times to buy and sell high-quality stocks (note that low-quality stocks may have a low RSI because they are heading towards bankruptcy, not because they are undervalued). RSI is an indicator of price motion -- a low RSI roughly means the stock has been declining in price while a high RSI roughly means the stock has been increasing in price.
When the daily, weekly, and monthly RSI values for a ticker go below 30, that represents an Accumulation Zone, where it may make sense to start buying that equity. When the daily rises above 30, that is considered a Buy Alert, as it is a sign that the equity in question was at a cyclical low and is starting to rise again. For the opposite reasons, when the daily, weekly, and monthly RSI values are above 70 it is considered to be in a Distribution Zone, and a Sell Alert is when the daily RSI drops back below 70.
A final note of advice from
Bill Cara's webpage:
"I use the following technical indicators every day, but in combination with fundamental and quantitative studies plus a healthy dose of intuition and common sense. I never rely on technical studies alone -- and neither should you." The point being that these RSI calculations can help inform your investing, but it would not be wise to blindly follow what they say.