MACD and RSI - Basic knowledge

Before that you start lerning with my system.First you should know about basically knowledge of technical tools... :)

MACD - Moving Average Convergence/Divergence - a technical
indicator, developed by Gerald Appel, used to detect swings in the
price of financial instruments. The MACD is computed using two
exponentially smoothed moving averages (see further down) of the
security’s historical price, and is usually shown over a period of time on
a chart. By then comparing the MACD to its own moving average
(usually called the "signal line"), traders believe they can detect when
the security is likely to rise or fall. MACD is frequently used in
conjunction with other technical indicators such as the RSI




Picture (a) Buy signal




Picture (b) Sell signal


RSI - Relative Strength Index - a technical momentum indicator,
devised by Welles Wilder, measures the relative changes between the
higher and lower closing prices. RSI compares the magnitude of recent
gains to recent losses in an attempt to determine overbought and
oversold conditions of an asset.