RSI Basics for CSE Context
RSI measures the speed and magnitude of recent price changes on a 0 to 100 scale. On the CSE, where stocks can stay in trending states for extended periods due to lower liquidity and concentrated institutional ownership, RSI thresholds sometimes need to be adjusted from classic textbook levels. Many CSE practitioners use 35 as the oversold threshold and 65 as the overbought threshold rather than the traditional 30/70.
Where to Find RSI on Investography
RSI is visible on the Stock Detail page as part of the technical indicators section. The value shown is Wilder's 14-period RSI calculated from daily close prices. You can also use the screener to filter for all stocks within a specified RSI range across the entire CSE market simultaneously.
RSI Divergence
RSI divergence occurs when the price makes a new high (or low) but RSI does not. A bearish divergence, where price makes a higher high but RSI makes a lower high, often precedes a reversal. A bullish divergence, where price makes a lower low but RSI makes a higher low, can signal an exhausted downtrend. Check for divergences on the 30-day and 90-day chart views.
Use the screener to run a monthly RSI scan. Filter for stocks with RSI between 30 and 40 as potential contrarian entry candidates. Review each result on the stock chart for signs that the oversold condition is stabilising before acting.
RSI and Alert Combinations
The most effective RSI-based alert strategy combines rsi_below (Pro+) with a price_above alert on the same stock. The RSI alert notifies you the stock has entered oversold territory. The price_above alert at a level just above the recent low notifies you when the price begins to recover. Both signals together give you a much higher confidence entry setup than either alone.