Dan D Kim

Let's share stories

Relative Strength Index

2020-11-02 Dan D. Kimmoney

I want to write a post about an indicator that I find quite useful.

Relative Strength Index (RSI).

What is it

Definition from Investopedia:

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset.

Basically, it’s something you can use to see if a stock has been over-bought or over-sold.

Why you should use it

You can use it to better understand the market(s) behind the stocks you are looking at. Understand what’s causing it to go up / down.

How to use it

  1. Load up the graph of a stock. Here, I will use Aritzia Inc (ATZ.TO).

Stock price graph of Aritzia

  1. Add an RSI Indicator

Adding RSI as an indicator to Yahoo Finance Stock Graph

  1. Set up config

Configuring RSI options

  1. Observe the graph

RSI graph

  1. Investigate overbought / oversold areas

RSI overbought area

  1. Do your research and find out if it’s justifiable

Google search with custom date range

Bloomberg Terminal Function

Shameless plug lol I work at Bloomberg and there is this one function on the Terminal that is related and super useful.


  1. Load up a graph using GPC <GO>

Aritzia stock price graph on Bloomberg Terminal GPC GO

  1. Click on Browse and choose Events.

Bloomberg Terminal GPC Browse Events

  1. Add whatever you want, but I like to add Earnings, Most Read News and News Headlines.

Bloomberg Terminal GPC Add Events

  1. Observe the graph

Bloomberg Terminal GPC Graph with news

Bloomberg Terminal GPC Graph with news popup

No, I wasn’t sponsored by Bloomberg or anything for this post. Just a cool tool I found on the Terminal during work and just wanted to share.

That’s all. Happy investing!