To paraphrase legendary investor Warren Buffett, market participants should be fearful when others are greedy and greedy when others are fearful. To take this sentiment to the extreme, Barchart offers an enticing screener called “RSI Oversold.” A little background information is warranted.
RSI stands for relative strength index. It’s one of the most common gauges within the discipline of technical analysis, measuring the robustness of recent price action. In turn, this measurement is used to provide a sentiment snapshot, determining whether conditions are overbought or oversold. When the index rises above the 70 level, the tracked asset is overbought. Below 30, it’s oversold.
