For those new to trading and investing, there are a bewildering number of theories, techniques, and analyses available. Some are based on obscure math, some on observable events, and some seem to be ...

A basic bearish signal is when the RSI crosses above 70, an overbought level. If this is followed by a move below 70, upward momentum may be weakening, alerting traders to a potential price reversal.

Bearish divergences and overbought conditions on the RSI are signals traders can look for when considering whether to close a position. A trade is profitable only if both the purchase and the sale are ...