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Indicators

RSI

Relative Strength Index — measures if a stock is overbought or oversold (0-100).

RSI above 70 = overbought (may reverse down). RSI below 30 = oversold (may bounce). For intraday trading, we use >55 as bullish bias and <45 as bearish bias. RSI divergence (price makes new high but RSI doesn't) is a powerful reversal signal.

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