Ashton Technology Group (fka ASTN)

[xxrayeyes]

As a general rule, RSI below 30 means the issue is oversold, RSI above 70 means the issue is overbought. Now you can get into charting trend lines with RSI and it can show underlying strength, but an up trending RSI is not a definitive buy signal. It would be more of a hold signal if you were already a shareholder. When an issue is oversold, you buy on the weakness looking for a bounce. When an issue is overbought, you short on the strength, looking for a retracement. RSI is not an indicator you use by itself though. Look at MACD to see if the trend is positive or negative and use RSI to generate buy/sell/short signals. Buy long when RSI is below 30 and MACD is trending up. Sell and/or short when RSI is over 70 and MACD is trending down. Remember, these are general rules and each issue is slightly different. Look into the past to see the future.

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