The shape of the RSI curve

The various patterns that appear when the RSI indicator consolidates at a high level or trades sideways at a low level are also an analytical method for judging the market and determining buying and selling actions. 1. When the RSI curve forms a high-level inversion pattern such as M head or triple top at a high level (above 50), it means that the upward momentum of the stock price has exhausted, and the stock price may have a long-term inversion. Investors should sell stocks in a timely manner. If the stock price trend curve also appears in the same pattern one after another, it is more certain that the magnitude and process of the stock price decline can be judged by referring to the top inversion pattern such as M head or triple top.

2. When the RSI curve forms a low inversion pattern such as a W bottom or a triple bottom at a low level (below 50), it means that the downward momentum of the stock price has weakened, and the stock price may build a medium- and long-term bottom. Investors can take positions in batches on dips. If the stock price trend curve also appears in the same pattern one after another, it can be more confirmed. The rise rate and process of the stock price can be judged by referring to the bottom inversion pattern such as a W bottom or a triple bottom.

3. The top inversion pattern of the RSI curve is more accurate in judging the market than the bottom pattern