VideoCharts7 min read
What the RSI indicator actually tells you (and what it doesn't)
RSI measures how stretched a recent move is on a 0 to 100 scale. It is useful for timing, useless for prediction, and misread by most beginners.
Technical analysis
Moving averagepichle kuch din ke bhav ka average line
A line showing the average closing price over a set number of periods, such as 20 or 50 days, used to smooth noise and see the trend.
A moving average smooths price by averaging the last N closes and plotting the result as a line that moves with each new candle. A 20-day simple moving average adds the last 20 closes and divides by 20; an exponential moving average gives more weight to recent prices. Traders use them to read trend direction: price above a rising 50-day average is generally an uptrend, price below a falling one a downtrend. Common settings are 20, 50, 100 and 200 days, with the 200-day widely watched by institutions. When a shorter average crosses above a longer one, it is called a golden cross; the opposite is a death cross. If SBI trades at ₹800 with its 50-day average at ₹780 and rising, the trend is up by this measure. Moving averages lag and whipsaw in sideways markets, so combine them with support, resistance and volume.
Related terms
Lessons that use this term
VideoCharts7 min read
Candlestick patterns for beginners: the five worth learning first
A candle is four prices drawn as one shape. Learn to read the shape first, then five patterns that only mean something at the right place on the chart.
Charts7 min read
Support and resistance: how to find the levels that matter
Support and resistance are the prices where the market has changed its mind before. Here is how to find the ones worth marking and how to use them with a stop.