Almorex

RSI and MACD Explained for AI-Assisted Investing

Almorex,•1 min read
technicalsRSIMACD

Technical indicators are not crystal balls. They are compressed views of price behavior. Used with fundamentals and news, they help you ask better questions.

RSI (Relative Strength Index)

RSI typically ranges from 0–100 and summarizes recent up vs down moves.

  • High RSI often means strong recent buying (sometimes “overbought”)
  • Low RSI often means strong recent selling (sometimes “oversold”)

“Overbought” does not mean “must sell.” Strong trends can stay extended.

MACD

MACD compares shorter and longer moving averages of price, then tracks the momentum of that spread.

  • Crosses and histogram shifts flag changes in momentum, not fair value
  • Works better as confirmation than as a standalone entry rule

Using indicators with AI

In Almorex, a technical agent reads indicators in context of the ticker’s recent path. Your job:

  1. Note whether technicals agree with the fundamental/sentiment story
  2. Treat divergence as a prompt to dig deeper, not an automatic trade
  3. Prefer consistency across timeframes you actually trade

Bottom line

Indicators are evidence. AI can organize that evidence; you decide the bet size. Learn more about multi-agent analysis.