Metrics to use

Understand no metrics are 100% accurate but as a baseline to judge a relative better entry or exit point - Why use RSI 14 why not say RSI 30 or other metrics or in conjunction with other metrics?

Hey there Peter.

Because we rely on fundamental analysis, we really don't try to time our exits and entries. We buy and highlight stocks we suggest could be long term profitable holds.

However, one technical indicator we do use to somewhat time entries and exits is the 14 day RSI, or Relative Strength Index.

The RSI produces a number between 0 and 100, where under 30 means the stock is oversold and due for a bounce. Whereas an RSI over 70 means the stock is overbought, and due for a pull back.

Keep in mind, this technical indicator is not accurate 100% of the time, none are. However, it can give you a baseline to judge entry and exit points. If you own a stock that has run up in price and it has an RSI level above 70, you may choose to sell some and enter again if there is a pullback. Or, vise versa. If the RSI of a stock is nearing oversold territory (30 or less) you may choose to wait to see if it does enter oversold territory and time your buy.