| RSI | Usually 70 represents overbought which is very bullish for those who are already in, however, generally it means you should think about selling your position. Generally, when a stock is overbought which 70+ represents then a decline is soon to follow. On the converse though, a stock which has an RSI of under 30 means it is oversold which is a bearish indicator, however it could represent a stock which maybe at a time to purchase. RSI should be used in conjunction with fundamentals to understand why the conditions exist in the first place. |
| Channel | Difficult to describe, however a channel represents the average recent high as the top and the average recent low as the bottom. Others may define the channel as upper level being resistance and the lower level being support. However, I have seen channels trade with-in that range. The idea is to flip stocks in the short term for the best possible price at the time. |
| SAR | Parabolic SAR is a weak indicator which implies whether the people are attracted the stock or could be closing their positions. It's more important in my opinion to look for the distance between the par dot and the candle and look for the convergence. For example, if the dots are going to slam into a candle from below; that could indicate a buy signal. Likewise, if the dots are far below the candles, it's a bullish indicator implying a hold. If the dots are about to slam into the top of a candle it could indicate a sell signal, while if the dots are way above the candles I wouldn't recommend taking a position. So, generally above the candle = bad, below the candle = good, unless your goal is to enter a stock at a weak point. |
| MACD | A lot of people like MACD, however, personally that is big board stuff. It crosses all day long. Generally, wider the lines are apart the more affect it has. If the bullish line is above the bearish line then watch for a convergence and possible sell point. Nothing goes up forever. Likewise, if the Bearish line is above the Bullish line then watch the stock for an entry point. |
| Accum/Dist | A deceptive indicator, a lot of people will point to it and say "look at all the people buying". This could actually be showing diluted shares being bought. Watching the line is important however, it should be checked with fundamentals. |