IndicatorsIntermediate
RSI (Relative Strength Index)
A 0 to 100 measure of how strong recent gains are compared with recent losses.
- What it means
- Above 70 is often called overbought, below 30 oversold.
- What to watch
- Divergence: price makes a new high but RSI doesn't.
- How Compass Alpha uses it
- Smart DCA scales buys down when RSI is very high.
More in Indicators
Moving averages
The average closing price over a set number of days, drawn as a smooth line (for example 20 or 50 days).
MACD
Moving Average Convergence Divergence: the gap between a fast and a slow average, with a signal line.
Bollinger Bands
A moving average with bands two standard deviations above and below.