3) Technical Analysis
Ever bought a stock at its peak only to watch it nosedive? Feels like dropping an expensive ice cream on the ground. RSI can help you tell when a price is 'overheated' or 'ice-cold' so you don't fall victim to FOMO.
RSI (Relative Strength Index) is a momentum indicator that measures the speed and magnitude of price movements on a 0–100 scale. Above 70 means the stock is overbought (too much buying pressure). Below 30 means it's oversold (too much selling pressure).
Think of RSI like a fever thermometer. If your body temperature hits 39°C (RSI > 70), you're 'overheated' and likely need to cool down. If it drops to 35°C (RSI < 30), you're too cold and will probably warm back up to normal. RSI basically whispers: 'Hey, this price is acting unusual, be careful!'
Real example: when ANTM rallied like crazy during a commodity hype, its RSI hit 85. Traders who understood RSI became cautious and prepared to take profit. Sure enough, the price corrected significantly days later. Conversely, when BBRI dropped sharply due to global sentiment, its RSI hit 22 — those brave enough to buy there saw a rebound within weeks.
After understanding this concept, apply it in tools so decisions become more objective and measurable.
Open RSI CheckerWhat does RSI 14 mean?
The number 14 means RSI is calculated based on the last 14 periods (usually 14 candlesticks). It's the most common default setting. You can change it to a shorter period (e.g. 7) for more sensitive signals, or longer (e.g. 21) for smoother signals.
Can RSI be used for all stocks?
Yes, but RSI works best on liquid, actively-traded stocks like BBCA, TLKM, or ASII. On thinly-traded penny stocks, RSI can give false signals because the price movement isn't natural.
