Advanced indicators: RSI, KDJ, BOLL & combos

This is lesson-collection #06 of Stock Knowledge 101, merging the former kb16–kb19 (4 mini-lessons). Read in order.

RSI relative strength

This is Lesson 16/31 of Stock Knowledge 101 〔Indicators〕.

• RSI = average gain/(avg gain+avg loss) over a period, 0~100, commonly 14.
• Overbought: RSI>70 (strong but beware pullback); oversold: RSI<30 (weak but may bounce).
• RSI around 50 = balance; crossing above 50 bullish, below bearish.
• RSI divergence (price new high but RSI not) is a classic top warning.

📌 RSI>70 don’t chase, <30 don’t panic-sell; it tells you if it’s hot, not if it’s turning.

KDJ stochastic

This is Lesson 17/31 of Stock Knowledge 101 〔Indicators〕.

• KDJ has K, D, J lines; more sensitive to short-term turns than MACD.
• Overbought: K,D>80; oversold: K,D<20; J can be ±, shows extremes.
• Golden cross (K over D, more reliable at lows) / death cross (riskier at highs).
• Weakness: great in ranges, but prone to ‘pinning’ (stays overbought while still rising) in trends.

📌 KDJ suits range-bound dip-buying/top-fading; in a trend it pins, don’t fight the signal.

BOLL Bollinger Bands

This is Lesson 18/31 of Stock Knowledge 101 〔Indicators〕.

• BOLL = mid rail (20-day MA) ± 2 standard deviations → upper/mid/lower channel.
• Touch lower rail = relatively cheap (oversold); touch upper = relatively expensive (overbought).
• Expansion (wider band) = rising volatility, trend may start; contraction = narrowing vol, imminent change.
• Mid rail is a strength divider: above = bullish, below = bearish.

📌 BOLL contraction always precedes a move; expansion shows direction; touching a rail isn’t a reversal, confirm.

Combining indicators: MACD + volume + MA

This is Lesson 19/31 of Stock Knowledge 101 〔Indicators〕.

• Single indicators fake out; combining raises hit rate: trend=MA, momentum=MACD, participation=volume.
• Classic bull resonance: price above year/60-day + MACD golden cross above zero + volume breakout.
• Classic top resonance: high-volume stall at highs + MACD divergence + RSI overbought + break of short MA.
• Any indicator lags price — use to confirm, not predict; position discipline is the core.

📌 Act only on multi-indicator resonance; when they conflict, wait, don’t guess.

⚠️ This article is a methodological illustration and does not constitute any investment or trading advice. Markets are risky; decide with caution.