Terms
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The indicators behind the Daily Playbook and our signals — explained in plain English, each with live examples from today's market.
RSI — the Relative Strength IndexRSI (Relative Strength Index) is a 0–100 momentum oscillator that measures how fast and how far a stock has moved; readings above 70 are considered ov…MACD — Moving Average Convergence DivergenceMACD is a momentum indicator built from two moving averages; when the MACD line crosses above its signal line, momentum is turning up, and when it cro…The 200-day moving averageThe 200-day moving average is the average closing price over the last 200 trading days; price above it is widely read as a long-term uptrend, and belo…The golden crossA golden cross occurs when the 50-day moving average crosses above the 200-day moving average, a widely-watched signal that the medium-term trend has …The death crossA death cross occurs when the 50-day moving average crosses below the 200-day moving average, a widely-watched signal that the medium-term trend has t…Overbought and oversoldA stock is overbought when momentum is stretched to the upside (often RSI above 70) and oversold when stretched to the downside (often RSI below 30); …Moving averages (50-day & 200-day)A moving average smooths price into a single trend line; the 50-day tracks the medium-term trend and the 200-day the long-term trend, and their relati…Relative strengthRelative strength measures how a stock is performing versus its peers or the market; the leaders — those furthest above their long-term trend — tend t…
Educational only. Not financial advice.