Information about STI Chart
By: Ankit Shah on Friday, January 01, 2010, 12:03:57 PM
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Those who are trading in stock market this information will be really helpful, it's about STI Chart :
The STI, ( Stock Trend Index ) is a complex algorithm designed to find the reversal point of the Particular Stock. In other words STI Targets the Reversal point for the stocks. Finding reversal or overbought oversold region in the NTI is not easy and not risk free too.
But it gives you a better indication for staying away from the stocks with the overbought or the oversold signals are generated.
The STI Signals are divided into 3 categories
The Buying Range
STI Value < 10 ( Buy this stock )
STI Value < 5  ( Very safe to buy )
STI Value < 3  ( Extremely good opportunity to buy )
The Selling Range
STI Value > 90 ( Sell this stock )
STI Value > 95 ( Very safe to Sell )
STI Value > 97  ( Extremely good opportunity to Sell )
NTI Algorithm assumes that there will be a very sharp pullback in the Stock after it reaches to the above values.
For Advance Users :-
The above charts can be used by the advance users to make better trade. Few important points to be consider by the advance users are :-
1. Decide the trend of the stock,
a. Stock can be in uptrend or down trend
b. for example at present RCOM is in down trend and GTL is in up trend
2. Once you decide the trend of a stock , please go with the direction of trend.
a. For example, if some stock is in uptrend then don’t short it whenever sell signals are generated by STI charts.
b. If some stock is in down trend then don’t go long in that by STI Charts, short it on every overbought region
3. User should track the news related to that stock ( some time the news can be very harmful for the stock , Like in case of SATYAMCOMPUTER and RCOM who were involved in some scam and stock fall badly ) for such scripts don’t use the STI charts.


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