H3 Enterprises Inc (HTRE)

[MBoomer17]

Well, I look at it this way...Use it with other indicators to predict the direction the stock is heading.

RSI down around or below 30 means the stock is oversold and could start going up.

RSI breaking up thru 50 shows some strength and the stock looks to be gaining momentum.

RSI breaking thru 70 is often referred to as the "power zone", can give a nice spike in price, but you need to start thinking about selling when the RSI is above 70. That means the stock is overbought and probably overvaulued.

And of course the opposite is true, coming down thu 70 or 50 shows the stock is losing momentum...

Keep in mind, you shouldnt use RSI alone to make decisions.

Here is a great site that explains it in more technical terms...

http://www.investopedia.com/terms/r/rsi.asp

Here's another chart...