What is the Stochastic Oscillator?

What is the Stochastic Oscillator?

The Stochastic Oscillator is an indicator that compares the most recent closing price of a security to the highest and lowest prices during a specified period of time. It gives readings that move (oscillate) between zero and 100 to provide an indication of the security’s momentum.

The stochastic readings are essentially percentage expressions of a security’s trading range over a given time period. (The default setting for the Stochastic Oscillator is 14 time periods – hourly, daily, etc.) A reading of 0 represents the lowest point of the trading range. A reading of 100 indicates the highest point during the designated time period.

Stochastic Oscillator Formula

The formula for calculating the Stochastic Oscillator is as follows:

%k = (Last Closing Price – Lowest Price)/(Highest Price – Lowest Price) x 100

%D = 3-day SMA of %K


  • C is the last closing price
  • Lowest Low is the lowest low for the time period
  • Highest High is the highest high for the time period

Oscillator History

Dr. George Lane developed the Stochastic Oscillator in the late 1950s for use in technical analysis of securities. Lane, a financial analyst, was one of the first researchers to publish research papers on the use of stochastics. He believed the indicator could be profitably used in conjunction with Fibonacci retracement cycles or with Elliot Wave theory.

Lane noted that the Stochastic Oscillator indicates the momentum of a security’s price movement. It is not a trend indicator for price as, for example, a moving average indicator is. The oscillator compares the position of a security’s closing price relative to the high and low (max and min) of its price range during a specified period of time. In addition to gauging the strength of price movement, the oscillator can also be used to predict market reversal turning points.

Uses of the Stochastic Oscillator

The following are the primary uses of the stochastic oscillator:

Identify overbought and oversold levels

An overbought level is indicated when the stochastic reading is above 80. Readings below 20 indicate oversold conditions in the market. A sell signal is generated when the oscillator reading goes above the 80 level and then returns to readings below 80. Conversely, a buy signal is indicated when the oscillator moves below 20 and then back above 20. Overbought and oversold levels mean that the security’s price is near the top or bottom, respectively, of its trading range for the specified time period.


Divergence occurs when the security price is making a new high or low that is not reflected on the Stochastic Oscillator. For example, price moves to a new high but the oscillator does not correspondingly move to a new high reading. This is an example of bearish divergence, which may signal an impending market reversal from an uptrend to a downtrend. The failure of the oscillator to reach a new high along price action doing so indicates that the momentum of the uptrend is starting to wane.

Similarly, a bullish divergence occurs when the market price makes a new low but the oscillator does not follow suit by moving to a new low reading. Bullish divergence indicates a possible upcoming market reversal to the upside.

It’s important to note that the Stochastic Oscillator may give a divergence signal some time before price action changes direction. For instance, when the oscillator gives a signal of bearish divergence, price may continue moving higher for several trading sessions before turning to the downside. This is the reason that Lane recommends waiting for some confirmation of a market reversal before entering a trading position. Trades should not be based on divergence alone.


Crossovers refer to the point at which the fast stochastic line and the slow stochastic line intersect. The fast stochastic line is the 0%K line, and the slow stochastic line is the %D line. When the %K line intersects the %D line and goes above it, this is a bullish scenario. Conversely, the %K line crossing from above to below the %D stochastic line gives a bearish sell signal.

Limitations of the Stochastic Oscillator

The main shortcoming of the oscillator is its tendency to generate false signals. They are especially common during turbulent, highly volatile trading conditions. This is why the importance of confirming trading signals from the Stochastic Oscillator with indications from other technical indicators is stressed.

Traders need to always keep in mind that the oscillator is primarily designed to measure the strength or weakness – not the trend or direction – of price action movement in a market.

Some traders aim to lessen the Stochastic Oscillator’s tendency to generate false trading signals by using more extreme readings of the oscillator to indicate overbought/oversold conditions in a market. Rather than using readings above 80 as the demarcation line, they instead only interpret readings above 85 as indicating overbought conditions. On the bearish side, only readings of 15 and below are interpreted as signaling oversold conditions.

While the adjustment to 85/15 does reduce the number of false signals, it may lead to traders missing some trading opportunities. For example, if during an uptrend, the oscillator reaches a high reading of 82, after which price turns to the downside, a trader may have missed the opportunity to sell at an ideal price point because the oscillator never reached their required overbought indication level of 85 or above.

If you don’t like the standard Stochastic Oscillator, you can try the Advanced Stochastic Scalper :

A Final Word on the Oscillator

The Stochastic Oscillator is a popular, widely-used momentum indicator. Traders often use divergence signals from the oscillator to identify possible market reversal points. However, the oscillator is prone to generating false signals. Therefore, it is best used along with other technical indicators, rather than as a standalone source of trading signals.

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Momentum is Back, Breadth Rallies; It’s Truth Time for OPEC and Crude Oil

The week of June 5 should be momentous as the bears who have been left behind consider whether to fully capitulate.

The stock market is back in rally mode as seasonal tendencies for a summer rally, especially in the third year of the presidential cycle, assert their influence. Especially comforting is the recovery in the market’s breadth, as measured by the NYSE Advance Decline line (see below). The US economy is showing signs of slowing, as the rate of rise in inflation is flattening.

Of course, things could change instantly, especially if, as I discuss below, OPEC does something dramatic at its June 3–4 meeting. Moreover, it’s all about whether the Fed leaves rates unchanged in June in order to see if the current flattening out of inflationary pressures is a prelude to an actual decline and what that does to bond yields.

I’ll have more on bonds below. First, a few words about the oil market.

OPEC’s Credibility is on the Line

Last week, I suggested that shorting a dull market is not a good idea. I was referring to the nearly complete lack of bulls in the oil market and suggested the energy sector was ripe for a bounce.

As I went to press on this post, rumors were circulating that OPEC was considering a 1 million barrel per day production cut, to be announced at the conclusion of its June 3–4 meeting. This cut, if it happens, will be in addition to production cuts previously announced, which are starting to make their way through the system and could reduce global oil supply meaningfully.

Crude oil ($WTIC) rallied on June 2, 2023, on the OPEC rumors and signs that oil production is already being reduced. For example, the US Rig count fell for the fifth consecutive week. Meanwhile, Canada’s oil sands giant Suncor announced 1500 job cuts. There are also rumors that job cuts are coming in the fracking sector in the US, as the number of active crews finishing wells is also shrinking.

Here’s the bottom line:

  • The US oil industry is dialing back production, and OPEC seems to be on a similar course.
  • If OPEC flakes out, they risk losing their ability to influence the price of oil, at least for the foreseeable future.

Watch the market’s response to OPEC’s announcement. If WTIC’s price rises above $75 decisively, then current market relationships, especially bond yields, stock prices, and what the Fed does at its upcoming FOMC meeting (June 13–14), will likely be affected.

I’ve recently recommended several energy sector picks. You can look at them with a free trial of my service. In addition, I’ve posted a Special Report on the oil market, which you can access here.

Bond Yields Test Resistance

The latest monthly payroll numbers were well above expectations, but the bond market is focusing on other signs that the economy is slowing. As I noted last week, bond yields are likely to fall once the economy shows signs of slowing and the Fed admits that it must at least stop raising rates. Here are some signs that perhaps we’re not too far from that point:

  • Dallas Fed Survey crashes, falling for the 13th consecutive month; one respondent noted: “There is nothing encouraging on the horizon.” Other notable quotes: “orders canceled,” “order volume has stalled recently,” and “seeing a massive slowdown.”
  • Dallas Fed services survey fell for the 12th straight month. Comments worth noting: “Businesses are preparing for a recession by looking for ways to cut back, which in some ways, works to create a self-fulfilling prophecy.”
  • Chicago PMI Collapses—new orders, prices paid, production, inventories, and employment fell.
  • China manufacturing PMI fell below 50, signaling contraction.
  • U.S. PMI and ISM surveys fell again.
  • China’s economy is showing signs of slowing.

Beige Book Confirms Slowing U.S. Growth

Confirming the negative news above, the Fed’s most recent Beige Book offered the following:

  • Prices are rising but are doing so more slowly.
  • New York and Philadelphia registered slowing economic activity.
  • Boston, Cleveland, Richmond, Chicago, St. Louis, and Kansas City reported flat activity.
  • San Francisco, Dallas, and Minneapolis reported slight growth.

The bottom line is that inflation seems to be rising at a slower pace and that the US economy is slowing, as eight of eleven Fed districts reported slowing or flat economic activity. The three that reported growth described it as slight to moderate.

Bond Yields Test Resistance. Mortgages Follow. Homebuilders Perk Up.

The most predictable relationship in the stock market currently is the one that connects bond yields, mortgage rates, and homebuilder stocks. When bond yields fall, mortgage rates follow. Increases in home sales register and homebuilder stocks rally.

The crucial point on the 10-Year US Treasury Yield ($TNX) is 3.85%. If yields remain below this level, the environment should remain stable.

Moreover, if I’m right and the economy continues to slow, bond yields will roll over, and mortgage rates will drop as demand for new homes again picks up.

As things stood last week, the S&P 500 Homebuilding Subindustry Index ($SPHB) seems to have made a short-term bottom as traders begin to factor in the scenario above.

If $TNX remains below 3.7%, it’s a sign that bond traders are less worried about inflation. This should be bullish for homebuilder stocks.

For an in-depth comprehensive outlook on the homebuilder sector, click here.

NYAD Rallies; SPX Joins NDX’s Breakout; Liquidity is Stable; VIX Hits New Low.

It was quite the week for the market’s technical picture.

The New York Stock Exchange Advance Decline line ($NYAD) rallied back above its 50-day moving average, signaling stocks are back in an uptrend.

The Nasdaq 100 Index ($NDX) extended its recent breakout, closing the week well above 14,500. The current move is unsustainable, so some pullback and consolidation are likely over the next few days to weeks. On the other hand, it could take some time for a consolidation or pullback to develop, as both accumulation distribution line and On Balance Volume (OBV) are in solid uptrends, signaling lots of upward momentum.

The S&P 500 index ($SPX) finally broke out above the 4100–4200 trading range, decisively confirming the trend in $NDX. OBV continues to improve, while the Accumulation Distribution line remained in an upward trend.

VIX Breaks to New Lows

The Cboe Volatility Index ($VIX) broke to a new low as call option buyers overwhelmed the market. This is probably a little too much bullishness all at once, so we’ll see how long it lasts.

When the VIX rises, stocks tend to fall, as rising put volume is a sign that market makers are selling stock index futures to hedge their put sales to the public. A fall in VIX is bullish, as it means less put option buying, and it eventually leads to call buying, which causes market makers to hedge by buying stock index futures. This raises the odds of higher stock prices.

Liquidity is Still Limited

The market’s liquidity may have bottomed out, but it’s not particularly bullish. The Eurodollar Index ($XED) failed to rally above 94.50, a bearish development. For now, it’s good enough to keep the rally from imploding. A move below 94 would be very bearish.

A move above 95 will be a bullish development. Usually, a stable or rising XED is very bullish for stocks.

To get the latest up-to-date information on options trading, check out Options Trading for Dummies, now in its 4th Edition—Get Your Copy Now! Now also available in Audible audiobook format!

#1 New Release on Options Trading!

Good news! I’ve made my NYAD-Complexity – Chaos chart (featured on my YD5 videos) and a few other favorites public. You can find them here.

Joe Duarte

In The Money Options

Joe Duarte is a former money manager, an active trader, and a widely recognized independent stock market analyst since 1987. He is author of eight investment books, including the best-selling Trading Options for Dummies, rated a TOP Options Book for 2018 by Benzinga.com and now in its third edition, plus The Everything Investing in Your 20s and 30s Book and six other trading books.

The Everything Investing in Your 20s and 30s Book is available at Amazon and Barnes and Noble. It has also been recommended as a Washington Post Color of Money Book of the Month.

To receive Joe’s exclusive stock, option and ETF recommendations, in your mailbox every week visit https://joeduarteinthemoneyoptions.com/secure/order_email.asp.

Joe Duarte

About the author:
Joe Duarte is a former money manager, an active trader and a widely recognized independent stock market analyst going back to 1987. His books include the best selling Trading Options for Dummies, a TOP Options Book for 2018, 2019, and 2020 by Benzinga.com, Trading Review.Net 2020 and Market Timing for Dummies. His latest best-selling book, The Everything Investing Guide in your 20’s & 30’s, is a Washington Post Color of Money Book of the Month. To receive Joe’s exclusive stock, option and ETF recommendations in your mailbox every week, visit the Joe Duarte In The Money Options website.
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Angel Broking Review – Demat & Trading Account Honest Review!

A complete Angel One Review: One of the leading broking service providers, Angel One is the largest full-service retail broker of India. Covering over 1+ Crore customer base, the full-service stockbroker recently changed its business model in November 2019 to offer a flat brokerage charge on all services and equity delivery as free of cost which is indeed an impressive move. Earlier they used to charge some percentage of the transaction amount on each trading.

With over two and a half decades of broking experience, Angel One has successfully managed to have a pan-India presence in over 1800 cities and towns. With modern and functional trading platforms, angel one serves their best when it comes to investment and trading advisory services.

It is also known for its transparent working policies and ethical practices. The firm has trading strategies that are considered best among all other retail brokers of the country. Their studies of economic and corporate parameters are so well-researched that the firm is considered as a synonym to the best service practices in the stock-broking industry serving investors interest to the fullest.

Today’s article is a beginner’s manual to understand what Angel one offers. This Angel one review article will highlight the history of the broking firm, brokerage and other charges they charge, what are their key features, what range of products and services they offer and what are the advantages and disadvantages of investing and trading with this firm.

Quick link to open your FREE account with Angel one.

Angel One History

Angel One (Previously known as Angel Broking) was incorporated in 1996 by Mr Dinesh Thakkar with a capital of Rs. five lakhs, half of which he lost in just eight months. Mr Dinesh comes from a textile business family in Mumbai with a very high reputation. Since he came from a family business background, he already had a flair of business ownership cum entrepreneurship running in his blood. He had his basic studies in Mumbai itself. He had a deep interest in technological innovations which is why he was able to bring innovations in his business – angel one that boasts some of the best technological and digital advancements.

Mr Dinesh took an opportunity when other stockbrokers of that time were not too much concerned about the customer services. And amongst all other brokers, Mr Dinesh’s stock recommendations were quite accurate and which is why he was able to grow more quickly as the best stockbroker. He considered his clients’ interests as a priority and focused on providing personalized services based on their specific needs. He believes trading as a zero-sum game and that is the reason he studied market volatility by reading books on fundamental and technical analysis. Today, the firm is very well-known for its straightforward advice and stock recommendations.

The company enjoys his memberships across BSE, NSE, NCDEX and MCX and registered with CDSL as a Depository Participant. The vast range of the services offered by Angel one includes stock and commodity broking, wealth management services, investment advisory and recommendation services, loans against shares, margin funding and financial products distribution.

To stay competitive in the market, Angel one started providing discount broking services under which the delivery trading is free of cost and other trading segments such as Futures, Options, Commodities, Currencies and Intraday trading services are charged at a flat rate of Rs. 20 per trade. It is applicable for trading through all exchanges.

They also provide investment advisory services that suggest which stocks to trade, where to invest, and why you should invest or trade in a particular stock and this is the main reason why it has such a huge client base serving in more than 8500 cities and towns. The trading software launched by this firm is also quite comfortable to use for any investor as it is user friendly which is why it is famous. You can read the detailed Angel iTrade Prime Plan review and get more insights.

Angel One Brokerage Charges & Other Charges

Here is a list of the different charges by Angel one in terms of brokerage and transaction charges, account opening charges, and other related charges.

  • Account Opening Charges: FREE (Opening Charges Waived)
  • Account Maintenance Charges (AMC): Rs 240 / Year

Special Offer: Right now, Angel one is offering a 100% waiver on the account opening charges. Hence, you can open your demat account with Angel one for FREE. Here’s a quick link to open your FREE account with Angel one.

Angel One Brokerage Charges – Segment Wise

Angel One offers ZERO brokerage for long-term delivery trades and a maximum Rs 20 per trade for Intraday, F&O, and all other traders. Here are the segment-wise brokerage charges while trading with an Angel One account.

Angel Broking ChargesBrokerage
Equity DeliveryZero brokerage
Equity Intraday₹ 20 / executed order or 0.25% (whichever is lower)
Equity Futures₹ 20 / executed order or 0.25% (whichever is lower)
Equity Options₹ 20 / executed order or 0.25% (whichever is lower)
Currency Futures₹ 20 per executed order or 0.25% (whichever is lower)
Currency Options₹ 20 per executed order or 0.25% (whichever is lower)
Commodity Futures₹ 20 per executed order or 0.25% (whichever is lower)
Commodity Options₹ 20 per executed order or 0.25% (whichever is lower)

(Source: Angel One Brokerage Charges)

Other Charges With Angel One

Nature Of ChargesRate
AMC (Account Maintenance Charges)Rs 240 (Rs 20 Per Month)
Call & Trade / Offline TradeAdditional Charges Of ₹ 20 / Order
Franking, KRA, CKYC, ESignature ChargesFree
Email Statements / Contract NotesFree
DP Charges₹ 20 Per Debit Transaction
₹ 50 Per Debit Transaction For BSDA Clients
Pledge Creation / Closure₹ 20 Per ISIN
₹ 50 Per ISIN For BSDA Clients
Demat₹ 50 Per Certificate
Remat₹ 50 Per Certificate + Actual CDSL Charges
Physical Statements / DIS Request / Physical Contract Notes₹ 50
Cheque Bounce Charges₹ 350
Delay Payment Charges On Outstanding Bill Amount If Not Paid Within Due Date1.5 % Per Month (Levied Every 15 Days)

Angel One Strengths – Special Features

Here are some of the biggest strengths of Angel One compared to other discount brokers and competitors:

  • Implementation of advanced technology and digital platforms makes the firm the leading independent largest full-service retail broking house.
  • Thanks to a market share of 12.3%, Angel One is currently India’s third-largest retail broking house in terms of the number of active clients in the NSE platform.
  • With more than two decades of experience and presence in the stockbroking industry, ‘Angel One’ as a brand has garnered a significant amount of respect and brand equity.
  • Their huge sub-broker network and the presence in many cities have enabled them to provide quality services leading to client satisfaction.
  • They also share videos and podcasts to educate their customers and investors in terms of making the best investment and trading decisions.
  • The personalized services to the clients based on their requirements make them stand out in the market.
  • The involvement of technological advancements into their trading platforms makes trading and investing activities very comfortable.
  • The AI-based ARQ platform is considered a world-class Robot-assisted service.
  • Angel One pioneer in new client activation, with the ‘Trade in One Hour’ service facilitating client activation in record time.

Also read: Zerodha vs Angel One: Stockbroker Comparison

Angel One Review – Products & Services

The Angel One provides a wide range of products and services for their clients trading in the equity and other segments. Let’s continue our Angel One review by looking into the details of different products and services offered by Angel One which are provided as follows:

Products of Angel One: The mainstays of all the products offered by Angel One are Equity Trading, Derivatives, Commodity, Currency, Mutual Funds and Insurance. The products not only enable customers to trade and invest but also provide news alerts, advisory and a huge range of insurance plans. Investors are enabled commodity derivatives interface as well as various insurance products with term plans, endowment plans, money-back plans, and so on.

Services by Angel One: The services provided by the Angel One include Demat Account, Trading Account, Intraday Trading, Advisory Services, Efficient Customer Support, Depository Service, Portfolio Health Score, ARQ – AI-Powered Robo Advisory, NRI Services and Loan against Shares. They also provide High Net Worth Individuals with best Portfolio Management Services. The technical assistance and detailed analytics services are also the foundation of the stock-broking firm.

Research, Advisory, and Stock Tips: The Full-Service broker presents regularly various research reports, advisory and recommendations and stock tips from experts to the clients so that they do not need to go out for such tips and services. The all-in-one stockbroker is equipped with advanced technologies that help investors make well-researched decisions.

ARQ: The highly efficient Artificial Intelligence-based Robo Advisory platform provides stock and mutual fund suggestions to investors based on the future predictions of various stocks and not from the past records. The service does not involve any special fee or a charge from the investor and it provides personalized fund management suggestions and tips. It is an integrated trading software that has an inclusion of the latest technologies.

Angel One Super App: The app serves as a multi-purpose platform where investors can trade online, receive news alerts and tips with real-time updates, reports and ledgers without any difficulty. Suitable for both regular investors and frequent traders, the app also includes easy and quick online fund transfer, charts and quotes, multi-asset trading, margin statements, limits, orders and much more.

angel one super app 2

Angel Eye: This web-based training platform provides users with services to manage the portfolio, online trading and latest updates of the stock market.

Angel Speedpro: The desktop-based trading terminal enables investors with 30-day intraday and 20 years of historical data for the high-level analysis for better investment decisions.

Angle Swift: This is a mobile web-based trading platform that allows trading from your smartphones and tablets.

Angel Lite: This mobile browser-based trading platform is exclusively prepared for the users having slow GPRS connections and it does not require any download or installation procedure.

Smart API: Angel One’s Smart API helps users to set up their trading platform in minutes with the FREE apis.

Angel One Review: Pros and Cons of Angel One

The unique selling price for Angel One can be their investment advisory service, stock tips, regular research reports and ledgers from the panel of highly talented experts in the field. Let us discuss what are other benefits and drawbacks the firm is having.

— Pros of Angel One Stockbroker

  • Angel One is the largest full-service broker with flat brokerage charges while delivery trades are provided for free.
  • Advisory services at no extra cost to discount brokerage.
  • It is a one-stop solution for a wide range of trading and investment-related products and services.
  • They use advanced technologies for investors to trade and invest on the go with the ease of access to many real-time updates and alerts.
  • AI-based Robo Advisory app – ARQ provides invaluable services.
  • The firm enjoys the pan-India presence in many cities with a great connection with sub-brokers.
  • They also provide the best research reports and stock tips to their customers which any other discount broker would barely provide at free of cost.

— Cons of Angel One Stockbroker

  • Angle broking does not offer Trading, Demat and Banking accounts – a 3-in-1 account as it is not a banking company.
  • Trades that need brokers assistance are charged extra Rs. 20 per executed order.

Also read: 12 Best Discount Brokers in India – Stockbrokers List 2023

How to open your Angel One Demat Account?

To get started, here is the direct link to the account opening page at Angel One.

On this page, the first step is to signup by entering your full name, your city, mobile number, and verifying the OTP. Then, you’ll be required to enter your PAN, bank account, Aadhar verification, and personal details to continue with the signup. Finally, you’ll need to eSign and online self-verification to complete the procedure.

All the instructions are clearly mentioned in the each-step of the account opening page. If you are good at reading and following instructions efficiently, then you do not need to read this entire post. Just go to the account opening page, follow the instructions, upload the documents and your account will be opened.

Moreover, you’ll be assigned an angel One executive once you sign up on the first step. Their details will be sent to you via message. He/She will help you out in the entire account opening process. If you face any difficulties while opening an account online, you can directly reach them out.

Read detailed step-by-step process here: How to Open Demat Account at Angel One?

Closing Thoughts

Through this article, we tried to cover the Angel One review for our readers. Let’s quickly summarize what we discussed.

Angel One is one of the leading full-service brokers in India which offer flat brokerage charge to its clients. It provides fast, modern, and easy to use trading platforms as well as expert advisory services to its customer base. Moreover, because of the simple and fast process, you can open your Demat account at Angel One within an hour if you’ve already got all the required documents.

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Vantagepoint A.I. Hot Stocks Outlook for June 2, 2023

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The Hot Stocks Outlook uses VantagePoint’s market forecasts that are up to 87.4% accurate, demonstrating how traders can improve their timing and direction. In this week’s video, VantagePoint Software reviews forecasts for SPDR SPY($SPY), AMAZON ($AMZN), Capital One ($COF), META ($META), Keysight Technologies ($KEYS), HESS ($HES), West Pharmaceutical Services ($WST).


Hello again traders and welcome back to the Hot Stocks Outlook for June 2nd, 2023. I hope y’all are having a excellent week out there in the financial markets. And as always, we’ve got plenty to cover here in today’s Outlook. So if you haven’t already, make sure you go ahead and click on the link below in the description box. You can get a live demonstration so you can learn more of the specifics about how this technology can help you make much better trading decisions in the marketplace.

So as we typically do, we can start out by looking at the SPY ETF and we can see that we’ve had a bumpy road here, and this is why it’s critically important to have the tools to identify the best opportunities in the marketplace so you can benefit as we see markets advance. So as we look at the SPY ETF over the past rolling 12 months, well we can see going back a year, we’re only up about 1%, six months, about three. We keep talking about that rally that started at the beginning of the year, but this is what’s important is things have been very choppy and sideways recently, and this is why it’s critical to be identifying the best markets to get bullish exposure and also just markets that you should avoid and stay away from.


So as we go ahead, let’s go ahead and start here with shares of Amazon. And this works the same every single week, every single forecast, every single evening for the trader. And what you have here is daily price action, so each one of these candles that you see represents a full and complete trading day. And so right up against all that daily price action, what you’re seeing is that there is a black-line value and a blue-line value right up against the chart. And so what that black-line value that you’re seeing there is, well that’s actually a simple moving average. This is a very common technical indicator. In this case, it’s a 10-period simple moving average. So just look back at the last 10 closes, add those all together, and then divide by that number. So what that does is it smooths out the existing price action, so it really acts as a baseline for VantagePoint users to know where the market has already been over a given period of time.

But traders need to be ahead of that next rally in the marketplace, and so what we’re able to do is actually compare that black, what you might call a lagging moving average, and we compare that to this proprietary predicted moving average. And so for this value to get plotted and calculated for the trader every evening, essentially a forecast of average prices moving forward, well this is where the technology of artificial neural networks come into play, and they’re performing what we would call intermarket analysis.

Now Amazon, very important stock, well it’s going to share market relationships with things like the broader S&P 500 or things like the Nasdaq, those broader indices. But what most traders aren’t doing at all is understanding how global market relationships, whether they’re taking place in ETF groups, whether they’re taking place in other individual stocks, maybe they’re inverse correlations, positive correlations, all the way down to individual commodity markets, things like dollar index, things like oil, gold, copper prices, and so it’s taking all of this into account, understanding how those competing market relationships are affecting the target market that you’re trading, in this case, Amazon, and it’s using those clues derived via that intermarket data to generate highly accurate price predictions.

And so rather than using tools that just look back at the past and just rearrange what’s already occurred, we have a forward-looking predictive tool that has an extremely high level of accuracy to help traders solve different problems. So when we’re trying to identify, hey, where are these shifts in the marketplace? Are we moving into an uptrend? Well whenever that blue predicted moving average crosses above the actual moving average, well it’s suggesting average prices are expected to move higher. And so we see here in shares of Amazon, since that forecast came through, the blue line has remained above the black line, so that forecast has remained signaling average prices are expected to keep going up, and you see that we’re up about 16% over the past 18 trading days. And so this is now 18 trading days, almost a month on the calendar.

Well if you’re trading Amazon, how do you want to be positioned in that market? Well you only want to be long, taking profits on longs, and we see that’s resulted in a nice rally here. But VantagePoint provides really a suite of indicators to solve different problems. If you look at the very right-hand side of the chart here, every week we look at these predicted high and predicted lows. These are intraday levels provided. Again, those neural networks really solving a different problem for the trader as far as short-term prices. And at the bottom of the chart, we have a predicted neural index that’s solving really a short-term strength or weakness just over the next 48 hours, or you can think of that as a couple of candles on the chart.

And so this is how we can understand, okay, well if I want to be long Amazon, I understand that blue line is above the black line, that neural index, that short-term strength in the market as that trend gets started, is fairly bullish here. And we see that as the market moves forward, you might get this move lower in the neural index, and you see that prices move below the previous close. Again, prices moving below the previous close, but the overall trend is still up and obviously a very nice rally here in shares of Amazon.

But let’s go ahead and move on, look at additional opportunities with the help of these indicators.

Capital One ($COF)

So here’s shares of Capital One. We’ve had a little bit of perking higher in financials. Actually, the markets are starting to perk higher. Broadly speaking, we see the SPY is still in an uptrend. But here we see shares of Capital One at a very strong crossover to the upside. Last week we talked about some of these financials doing well, neural index, very bullish, that short-term forecasting highlighting strength. And you’ll notice that when the neural index goes bearish, we get a little bit of a sideways price action, but that prediction of the moving average is still well above the actual moving average and the trend is still up.

So lastly, like we do each week, we can look at, well what were those predicted highs and lows telling you each and every trading day as we move forward through time in shares of Capital One? And of course, we can go ahead and bring up those predicted highs and lows and take a look, and you see that you have this guidance that says, okay, well look down towards these predicted lows to establish a position. And really this just being this last week, we had Memorial Day, so this is Tuesday, Wednesday, Thursday. Well if you’re looking for a place to buy, you have a market with the market I’m overall uptrend, neural index forecasting strength of the next 48 hours, and then the market moving down towards this predicted low. So you can have limit orders ready to go, so you can scoop up shares at really good prices where traders usually aren’t ready to go ahead and be buying up at the right time. Well here, you see that’s already a rally of about 3.6% and a excellent weekly entry moving into a more and more bullish market as things move forward.


Here’s shares of Meta platforms, and we keep looking at this over the past few months here. Well over the past few weeks here, that blue line has crossed above the black line, resulting in a 14.7% rally in 13 trading days, again, about two and a half weeks now. Very clearly, you want to trade Facebook Meta, you’re on the bullish side. We have one day out of the 13 where the neural index is bearish. So this neural index has a very high level of accuracy, upwards of 86, 87% accuracy. That’s through earnings, that’s through fed announcements, and you really see it here. It’s as the market advances, you keep getting a consistent short-term forecast that says up, up, up, and you also get the guidance from those predicted highs and lows really every single day here that says, okay, well if you want to buy Meta, look down towards these predicted lows to accumulate a position.

And again, this past week, where are you looking in the market? Well this dip that we had on Wednesday seems to be a very good opportunity to buy in a bullish market with the neural index bullish towards those predicted lows where we should expect those extremes in prices. So again, just this past week, want to look short term for the shorter-term traders in the market here, almost a 5% rally into trading days with the market barely pushing against you at all.

Keysight Technologies ($KEYS)

Here’s Keysight Technology again, just highlighting where is the strength in the market? Where should the focus be as a trader as far as identifying new trading opportunities? And so we’ll go ahead and take a look as that blue line crosses above the black line in Keysight Technologies. We’ve got to move about 13% over the past 18 trading days. But traders need to manage these sorts of opportunities, and so as each day rolls forward, as the trader is moving forward through time, well what information do they have? Well it says, okay, well buy at this predicted low. The beauty of this is in reality, you’d get filled at the open. The market says, okay, well expect the market to maybe come back and retest that open. Well no, the trend is just up. You only want to go long here. And you see how as you move down to these predicted lows, you want to be a buyer. Within essentially 24, 48 hours, this market’s moving higher and advancing towards the predicted highs and resuming the uptrend that we’ve identified here over the past few weeks. So again, Keysight here, really nice opportunity, again, in a pace with the rest of the market here, about a 13% rally over 18 trading days.

Now we have talked about weakness in the market, and so this is the beauty of this. You look at that SPY ETF, it’s chop city, no clear direction. We’re grinding up, but you’ve got these vicious moves lower, and if you’re in those stocks when the S&P has those vicious moves lower, well you’re going to have a problem.


Well one of those areas we identified of weakness was energy. And we were talking about Hess and Exxon on the way up. We had Saudi Arabia announcements, and the market just gapped up seven or 8% in a day in the oil market. That is not the case anymore. And so while these markets have been doing really well, and you can identify specific stocks where you may want to go ahead and set up shop and take long positions, you want to avoid the energy space over the past couple months. So we see as the blue line crosses below the black line here in Hess, we’ve had shares keep declining. And this is how traders can use this information as we move forward through time that says, Hey, is Hess ready to go? Are we getting that blue line crossing above the black line? Well no, we’re not, and we see that shares are off 11% over the past 29 trading days.

And with the help of things like VantagePoint’s predicted highs and lows, you can see that all you’re getting is the information that says, look, this isn’t a downtrend. You get these moves up towards these predicted highs. All you want to do is short, take profits on shorts, and then we see this past week, so many better markets to be getting bullish exposure in the marketplace. So we’re seeing this market perk up a little bit here recently, some more volatility as shares keep going lower. But does this look anything like Keysight Technologies or Facebook and Meta or Capital One or Amazon? No, it’s completely different, and you got a down slope, a blue line below the black line, and a lot of weakness here.

West Pharmaceutical Services ($WST)

Last week we looked at West Pharmaceutical Services, again, just highlighting some weakness in the market. Where is that taking place? Where are markets where we maybe want to hedge the market in short or just completely avoid. Let’s get long where there’s bullishness and get out of the way where things are moving lower. Well here we see West Pharmaceutical Services, you have that blue line crossing below the black line, the market trending lower. But again, just look at the last week here. Market’s off about 7% in past 16 trading days. Is this the market where you’re going to make a bunch of money this week as a short-term trader? Well no, there’s better opportunities, better places, to line up where you could have bought on Wednesday, and we see markets advancing and moving higher three, four, or 5% just in the past couple of days.

So just want to, again, highlight many of these opportunities we keep looking at each and every week, but this is why it’s critically important to understand, okay, well what are the broader markets doing and where can I identify the actual areas of strength so you can set up a portfolio of longs and shorts to really benefit regardless of what we get here in the broader markets and the broader indices.

So with that, I’ll leave it there. Have a great rest of your week. Once again, this has been the Hot Stocks Outlook for June 2nd, 2023. Thanks again, and bye for now.

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Best Dividend Stocks to Watch Out for in 2023 | Spiking

You may have read in the news about high-dividend companies and upcoming dividend stocks and pondered whether you should buy any of these high-dividend-producing companies. Investment in these companies has disadvantages; let’s explore this further by starting with the basics.

How Do Dividends Work?

The total return on investment for a shareholder comes in the form of capital growth due to an increase in share value and dividend payments. Dividends are regular sums of money that businesses pay their shareholders out of their profits. In addition to cash, they can also take the shape of securities or other financial assets.

What Are Dividend Stocks, And Why Should You Buy Them?

A company that regularly distributes sizable dividends from its profits to its owners is said to have dividend stocks. Large dividend payouts could be considered by large, successful firms, in particular, if they believe that their stock prices would remain stable. This would satisfy current shareholders while also luring new ones, raising the stock price. Several times a year, some firms pay dividends in the form of total dividends and interim dividends.

Therefore, if a company that regularly distributes big dividends announces an impending dividend release, you should buy it because you will receive the dividend (by merely investing the share price at the time of purchase) and will probably benefit from capital growth in the near future. Last but not least, a company’s capacity to declare dividends is a sign that it is both financially stable and growing.

It is imperative that you comprehend a few financial concepts linked to dividends before continuing to read about the top dividend-paying stocks in 2023:

To calculate dividend growth, divide the annual cash dividend paid by the corporation per share by the current stock price.

Dividend Yield is determined by multiplying the share price by the dividend per share.

The final dividend paid to shareholders is divided by the company’s year-total profits to determine the payout ratio for dividends.

Avoid investing in stocks from companies that have an abnormally high dividend payment ratio (let’s say 50%), as they may not have enough capital for growth and reinvestment. Top dividend-paying stocks in 2023 aren’t always in your best interests, as a result.

Best Dividend Stocks to Watch Out for in 2023


Since its 2013 separation from Abbott Labs (ABT 0.36%), the pharmaceutical company AbbVie has a stellar dividend track record. AbbVie has grown its payout by an astounding 270% since its inception through early 2023. By increasing its distribution each year, Abbott’s history of dividend growth has been continued by AbbVie.

Brookfield Infrastructure

Operating a diverse portfolio of infrastructure companies with an emphasis on utilities, transportation, energy midstream, and data is Brookfield Infrastructure. To fund their expanding dividend, the firms provide a comparatively steady cash flow. Early in 2023, the corporation announced that it had increased its payment for the 14th year in a row.

Over the long run, Brookfield plans to increase its dividend at a rate of 5% to 9% annually, driven by the organic development of its current companies and acquisitions. In 2022, it secured $2.9 billion in funding across five investments, which ought to support expansion over the ensuing few years.

Consolidated Edison

Consolidated Edison, also known as ConEd, is a gas and electric provider that serves the greater New York City area. ConEd has a strong history of paying dividends. For the previous 49 years straight, the firm has grown its payment, the longest stretch of any utility in the S&P 500 index. Most likely, the trend won’t end soon. ConEd is constantly investing in growing its business, including more money spent on environmentally friendly endeavours as the American economy quickens its transition to cleaner energy sources.

Crown Castle International

A REIT with a particular focus on owning fibre optic cable, tiny cells, and cell towers in the United States is called Crown Castle. The next-generation 5G network for the mobile industry depends on this infrastructure. In order to fund 7% to 8% annual dividend growth, Crown Castle sees a long-term opportunity to invest in new 5G-related infrastructure. Since 2016, it has increased its dividend payment at a compound annual rate of 9%.

Digital Realty

Data Centre management is the primary emphasis of Digital Realty, a REIT. The business has a strong dividend track record. In 2022, it increased its dividend payment for the 17th year in a row. Given the requirement for new infrastructure to accommodate the rapid expansion of data globally, the rising trend should continue.


Enbridge, a major Canadian oil pipeline company, has consistently been a top dividend stock. It has increased its payout every year for the past 28 years while continuing to pay dividends for more than 68 years.

Enbridge is adjusting by investing in infrastructure to enable offshore wind farms and natural gas projects as the world switches its fuel supply from oil to cleaner substitutes. The firm is on track to expand its cash flow per share at a mid-single-digit annual rate for the foreseeable future as a result of the investments, which should support further dividend growth.

Gilead Sciences

One of the biotechnology industry’s most alluring dividends is paid by Gilead Sciences. Since it began paying dividends in 2015, the company has a strong track record of doing so, increasing its distribution each year. The biotech is anchored by its potent HIV brand.

But Gilead has also been able to profit from Remdesivir, one of the few COVID-19 medicines that has received FDA approval. Other promising medications in the company’s pipeline should support ongoing revenue growth in the future.

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RSI Indicator: The Best Way to Trade RSI Based on Data

I backtested four RSI indicator trading setups from 1-minute to daily charts across the DJ30 stocks from 1 month to 27 years, equaling over 820 years of testing data. Not all RSI configurations work, but I discovered the most profitable RSI indicator settings.

Can the RSI make you a profitable trader? Strap in for a deep dive into mastering this indicator! Learn how to use the RSI effectively and elevate your trading game.

RSI Indicator – How to Trade RSI Based on Researched Data

What is RSI?

Relative Strength Index, or RSI, is a technical analysis indicator that charts the strength and speed of a market’s price movement. RSI measures the magnitude of recent gains and losses over a specified period, typically 14 days, creating an oscillator that moves between 0 and 100.

RSI can determine whether a stock is overbought or oversold and helps traders identify higher probability entry and exit points. It can also help traders assess the momentum of a stock’s price movement, which could then inform decisions on when to enter or exit trades.


  • RSI is an oscillating indicator that measures the speed and change of price movements.
  • RSI oscillates between 0 and 100 and is measured over a 14-day period.
  • Readings above 70 indicate an overbought market, while readings below 30 indicate an oversold market.
  • RSI has a 53% success rate based on multiple backtests using RSI-14 on an hourly chart.
  • Selecting the right stock for RSI can produce large gains.

How to Trade RSI: Buy & Sell Signals?

To trade using the RSI indicator, traders will look for buy and sell signals based on the value of the RSI oscillator. When the RSI exceeds 70, it indicates an overbought market, meaning price increases may slow down and reverse. The typical trigger for selling an asset is the RSI line crossing down through the 70 mark.

For an RSI sell signal, traders will look for the oscillator to dip below 30. When the RSI is below 30, it indicates an oversold market, meaning that price decreases may slow down and reverse. The typical trigger for buying an asset is the RSI line crossing up through the 30 mark.

See the chart below for details on RSI buy and sell signals.

How to use the RSI indicators to trade and make buy and sell decisions.

But the big question is, are the RSI buy and sell signals profitable like the ROC indicator, or is the RSI another chart indicator that simply does not work, such as moving averages?

How to Trade RSI using Price Divergences

The second way to trade the RSI is by looking for divergences between price and RSI. When the price makes a lower low, but the RSI doesn’t make a lower low, this is called a bullish divergence. Conversely, with a bearish divergence when the price makes a higher high, but the RSI doesn’t make a higher high.

These divergences indicate that the price and RSI are moving in different directions, which could indicate an upcoming reversal. The chart below illustrates a bullish divergence, with prices making lower lows and RSI making higher lows. This indicates the potential for the trend to reverse in an upwards direction.

If you see a divergence, be sure to watch the market closely for potential trading opportunities. Confirmation of a reversal is best achieved by waiting for the price or RSI to break a support/resistance line and enter into the new trend. If you get too eager and jump in before confirmation, you could find yourself on the wrong side of any upcoming price movement.

We independently research and recommend the best products. We also work with partners to negotiate discounts for you and may earn a small fee through our links.

How to use RSI to spot price divergences.
How to use RSI to spot price divergences.

Chart Produced with TrendSpider

A divergence occurs when the price and RSI readings move in opposite directions and can signal a potential trend reversal. The problem with divergences is that they cannot be accurately measured using backtesting systems. So, we will use the overbought and oversold conditions for our indicator testing.

How to Calculate RSI

RSI is automatically calculated using the best charting software like TrendSpider or TradingView. But if you want to calculate RSI yourself, read on.

The RSI indicator is calculated using the following formula:

RSI = 100 – (100 / (1 + RS))

Where “RS” is the Relative Strength Index. This value is calculated by dividing the average gain over a certain period by the average loss during that period.

The RS Relative Strength Index is calculated by dividing the average gain over a certain period by the average loss during that period. This value is then used to calculate the RSI indicator. To determine the average gain, add up all of the positive price changes over a given amount of time and divide this total by the number of periods. To calculate the average loss, add up all of the negative price changes over a given time and divide this total by the number of periods. Once these values are determined, divide the average gain by the average loss and use this ratio to calculate RSI.

The RSI uses a range of 0-100, with 50 being the midpoint. Values above 50 indicate an upward price trend, while values below 50 indicate a downward trend. When values are around 70 or higher, it indicates that the asset is overbought, and when they are around 30 or lower, the asset is considered.

What are the Pros of RSI?

One of the main benefits of using RSI is that it helps identify overbought and oversold conditions in a security or market. This can help traders make better decisions on when to enter and exit positions, improving their chances of success and helping them manage risk more effectively. RSI is also relatively easy to calculate and interpret, making it an accessible indicator for traders of all experience levels. Finally, the RSI can also identify divergences between price movements and a security or market’s underlying strength or weakness, which can help confirm trend reversals.

What are the Cons of RSI?

One of the biggest drawbacks to using RSI is that it can produce false signals. For example, when a security moves into overbought or oversold territory and stays there for an extended period, the RSI may give misleading buy or sell signals.

How to Set Up RSI Backtesting

To set up RSI backtesting in TrendSpider, follow these weighted steps. Register for TrendSpider, select Strategy Tester > Entry Condition > Add Script > Add Parameter > Condition > Indicator > RSI 14, Crossed Up Through > Constant Level = 30. For the Sell Criteria, select > Add Script > Add Parameter > Condition > Indicator > RSI 14, Crossed Down Through > Constant Level = 70. Finally, click “RUN.”

How to Configure RSI Indicator Backtesting in TrendSpider.
How to Configure RSI Indicator Backtesting in TrendSpider.

Backtest Your Strategies on TrendSpider Now

Using the award-winning TrendSpider software, we can easily test any indicator, chart pattern, or chart performance on any US stock. Our Trendspider review reveals it offers the most powerful trading strategy development and testing service.

RSI Indicator Backtesting Results

I tested the standard configuration of RSI 14 on the Dow Jones Industrial Average stocks on four timeframes, 1-minute, 5-minute, 1-hour, and daily charts, and the results were surprising. On a 1-minute chart, RSI produced only a 20% success rate, and a 5-minute chart over 1 month produced only a 23% win rate.

Interestingly, the standard setting of RSI 14 on a daily chart, widely recommended by supposed experts, only produced a 20% win rate.

RSI Indicator TestOHLC ChartDuration% WinnersAvg # Trades
RSI 14,70,301-min20 Days20%19
RSI 14,70,305-min1 Month23%8
RSI 14,70,301-hour4 Years53%10
RSI 14,70,30Daily27 Years20%20

The Best RSI Indicator Settings

Our 820 years of backtests revealed conclusively that the best setting for RSI is using RSI-14 on an hourly chart. This produced a win rate of 53% versus a buy-and-hold strategy. That might not seem like more than a 50-50 chance of success. But some of the profitable stocks were incredibly successful.

Next, I will show a selection of those successful trades.

A 12-Year RSI Indicator Test

Our testing of Visa Inc (Ticker: C) on a 1-hour chart over three years shows an RSI-14 strategy returning a profit of +53% versus the buy-and-hold return of 11.75%. There were 26 trades with an average win of 3.42% versus a loss of -1.97%. 65% of trades were winners.

This was an impressive result, although not typical of all stocks in the test.

RSI Indicator Profitable Backtest: 1 Hour Chart, Visa Inc, 3 Years
RSI Indicator Profitable Backtest: 1 Hour Chart, Visa Inc, 3 Years

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A 19-Year RSI Test on a Daily Chart

Our testing of International Business Machines over 19 years shows the RSI strategy returned a profit of +112% versus a buy-and-hold return of 46%. This is a vastly superior return, with 62% of trades being winners, with an average trade return of 4%, versus losses of 1.95%.

RSI Indicator Test: IBM - Daily Chart - 19-Year Test
RSI Indicator Test: IBM – Daily Chart – 19-Year Test

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RSI Indicator Testing Reveals Losing Trades

If you had traded Boeing stock over the last 19 years using a standard RSI-14 strategy, you would have made only a 4.63% profit versus a buy-and-hold strategy profit of 375%. This highlights that you must select the rights stocks to trade. Boeing is a cyclical stock and has suffered greatly due to the Covid lockdowns, technical engineering issues, and lack of demand.

RSI Indicator Testing Produced Some Severely Unprofitable Stocks
RSI Indicator Testing Produced Some Severely Unprofitable Stocks

Master Backtesting with TrendSpider

If a stock is in a long-term downtrend, you are unlikely to make profits with a buying long strategy using any indicator.

Testing RSI on the S&P 500 Index Over 26 Years.

To test the RSI indicator on the largest US stocks in the S&P 500, I used the excellent backtesting solution provided by FinViz Elite. Finviz’s point-and-click backtesting engine allowed me to test RSI-14 on a daily chart over the previous 26 years. Here are the results.

How to Backtest RSI Using FinViz Elite.

To set up RSI backtesting in FinViz, follow these steps. Register for FINVIZ, select Backtests > Index=S&P500 > Entry When > Indicator > Relative Strength Index > Parameters 14 > Comparison= “Cross>” > Indicator Value = 30. For the Sell Criteria, select Entry When > Indicator > Relative Strength Index > Parameters 14 > Comparison= “Cross< “> Indicator Value = 70. Finally, click “Run Backtest.”

How to Backtest RSI Using FinViz Elite
How to Backtest RSI Using FinViz Elite

Easy Stock Market Backtesting with Finviz

26-Year RSI Indicator S&P500 Test Results

Backtesting the RSI indicator across the entire S&P500 index from 1996 to the present showed a 1282% return versus a buy-and-hold strategy profit of 881%. This means RSI on a daily chart outperformed the S&P 500 by 45% over 26 years.

This result using FinViz is impressive, 500 stocks were tested over 26 years, and the results took 30 seconds to produce. This is broad market proof that the RSI indicator is worth trading.

26-Year RSI Indicator S&P500 Test Results
26-Year RSI Indicator S&P500 Test Results

Combining RSI with Other Indicators

Incorporating RSI with additional chart indicators, such as Price Rate of Change or bullish chart patterns, is optimal. The RSI excels in markets trending either up or down. However, it provides multiple false buy and sell signals during consolidation, leading to many minor trading losses. Therefore, avoid using this indicator in consolidating markets.

Can the RSI be used for Buy & Sell Signals?

Yes, with 820 years of data across 30 Dow Jones stocks, our research shows that the standard RSI setting of 14 on a 1-hour chart is the best configuration for identifying profitable buy and sell signals with a 53% success rate and 65% average winning trades.

Should You Use the RSI Indicator?

Yes, our testing shows using RSI on its standard setting of 14 is a profitable tool for trading. It beat the S&P 500 over 26 years by 45%, and produced 53% winning trades on the Dow Jones Industrial stocks.

Limitations of Using RSI

Although the RSI is a powerful trading tool, it should not be used in isolation. It is best utilized when combined with additional chart patterns and indicators. This will help you avoid false signals and losses due to market consolidation phases. Additionally, when using the RSI for buy and sell signals, ensure that stock volume confirms the validity.

Summary: Trading RSI

After testing 820 years of data, it’s safe to say that using RSI as a trading indicator on OHLC charts for buying and selling is generally a winning strategy. Use this indicator on hourly charts, using the RSI-15 setting to improve your chances of trading profitability.


Is RSI a good indicator?

Yes, our research shows that RSI is a good indicator on a 1-hour candlestick chart with a setting of 14, producing a 53% success rate and over 53% winning trades. Our 26-year test of RSI on the S&P500 produced a market-beating performance of 1282% vs. a buy-and-hold performance of 881%.

What is the best setting for RSI?

Our testing shows that the best setting for RSI is 14 on an OHLC 1-hour chart which yields a 53% win rate. RSI-14, on a daily chart, also outperformed the S&P 500 returns over 26 years by 45%.

What indicators are better than RSI?

While RSI is a profitable indicator, others have higher success rates, such as the rate of change and chart patterns. Our testing has proven these indicators to be more effective, work on many timeframes, and are more successful in trading strategies.

Is RSI the best indicator?

No, while RSI is a very good indicator for trading, with a 53 percent success rate, bullish chart patterns such as the Double Bottom have an 88 percent success rate. I recommend learning to backtest and fine-tune trading strategies with TrendSpider for trading success.

What is the best time frame for RSI?

The best timeframe for RSI is a 14 setting on an hourly chart, which produced a 53 percent win rate, according to TrendSpider. We conducted a 26-year backtest and found RSI-14 on a daily chart produces 54% of winning trades.

How reliable is RSI?

RSI is a reliable technical analysis chart indicator. Our 820 years of backtested data on 30 major US stocks show a 53% chance of beating a buy-and-hold strategy on a daily OHLC chart. Also, a 26-year backtest on the S&P 500 showed RSI outperformed the market by 45%.

What is the best software for trading and testing RSI?

For our comprehensive RSI trading analysis, we leveraged TrendSpider, an industry-leading trading tool for backtesting and strategy development. As an expert, I found it to be an invaluable resource.

Which is better, RSI or moving averages?

RSI is better than all moving average indicators, based on 2,880 years of backtesting data. Our research indicates that RSI outperforms moving averages with a 53% win rate vs. the SMAs’ 12%. Both indicators have poor success rates and are not recommended for traders on standard charts.

How to read the RSI chart?

To read RSI, look for oversold and overbought levels at 30 and 70, respectively. When the RSI crosses down through 70, it is a sell signal to traders; when it crosses up through 30, it is a buy signal.

What is the best software for trading RSI indicators?

TrendSpider is hands-down the top software for trading and backtesting RSI indicators; with point-and-click backtesting requiring no coding, it’s a game-changer! TradingView is also good, offing pine code backtesting and global stock exchange, crypto, and forex coverage.

Is RSI the same as a moving average?

No, RSI is not the same as a moving average. There are four main moving averages; simple, exponential, weighted, and Hull. The RSI is an oscillating indicator with a different calculation and higher reliability.

Does RSI work?

Yes, RSI works very well, but only with a specific configuration using RSI-14 on a daily or hourly chart. This setup is tested to have a 53% success rate and outperforms the S&P 500 stocks by 45%. All other standard settings on OHLC/ candlestick charts are not profitable.

How accurate is RSI?

The RSI indicator is relatively accurate, especially with a standard OHLC, line, or candlestick chart. Our research indicates that RSI has a 53 percent win rate. Only the rate of change indicator on a Heikin Ashi chart is more effective at 66 percent.

How to make money trading RSIs?

To make money trading the RSI indicator, use a setting of 14 on an hourly or daily chart. This configuration will produce a 53% win rate. Conversely, that means a 47% chance you will not outperform a buy-and-hold strategy.

Is RSI effective for day trading?

No, RSI is not effective for day trading. Our test results on 1-minute charts show a low success rate of 20%, and a 5-minute chart had a 23 percent success rate. You can develop and test your own original day trading RSI strategy by backtesting with TrendSpider.

TrendSpider Review 2023: We Test If Its The Best?

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How To Benefit From a Big Rotation in Asian Markets

It’s been a while since we discussed international stock markets.

Above is the Relative Rotation Graph that shows the rotation for a group of international stock market indices against $DJW, The Dow Jones Global Index.

Looking at this chart I see two big(ger) rotations that are probably worth tracking and possibly trading.

US vs Europe

The first one is the relationship between the US and Europe. On the chart above the tails for $SPX and $E1DOW are a bit covered by other markets so I highlighted them in the RRG below to better see their current rotations.

After a period of outperformance, the European market(s) have now turned down into the weakening quadrant where the tail stabilized and started to move lower on the JdK RS-Ratio scale. The length of the tail indicates that the loss of relative momentum has been quite powerful so far.

The S&P on the other hand, has rotated from lagging into improving and has recently crossed over into the leading quadrant again. The tail is a little shorter than for $E1DOW and it is closer to the benchmark but that is primarily because of the heavier weight of the US markets in the DJ Global index.

There is still a chance that Europe will curl back up while the US rolls over. Which would essentially mean that the recent rotations have only been a pause in the outperformance of Europe over the US.

However, based on the individual charts for both markets that seems to be the less likely scenario.


The S&P is on its way to breaking above its previous high at the moment which, in itself, is already a good sign. But more importantly, the relative strength line against The DJ Global index is solidly moving higher indicating a relative uptrend against the world.


The European index, on the other hand, has just bounced off overhead resistance around 380. This has caused the RS-Line to start rolling over which is now pushing the RRG-Lines lower.

Not only from a price perspective is Europe now lagging behind the US but also in relative strength against the world. Both markets are at opposite trajectories, and these sorts of situations always provide good trading opportunities.

A straight comparison between $SPX and $E1DOW on a daily chart highlights the improvement of the US over Europe in even more detail.

Japan vs Hong Kong

The second major rotation that I see on the RRG for world indices is the one between Japan and Hong Kong. These tails are well visible on the RG at the top as they are further away from the benchmark and the clutter of the other markets.

The RRG below zooms in on the rotation between these two Asian markets.

The opposite rotation is clearly visible and the length of the tails indicates the there is quite some power behind both moves.

Three weeks the tails crossed over from left to right and v.v. confirming the change of trend.


The Japane Nikkei Index is breaking beyond a major overhead resistance level at the moment. It already looks pretty impressive on the chart above, but when we change the chart to monthly and show more history, things are getting even more interesting.

Not only are Japanese stocks pushing to the highest level in more than two years. This break also opens up the way for a test of the all-time high for the Nikkei index. And unlike many other markets, this all-time-high was not set in the last 3-4 years but more than two decades ago.

And also, don’t be fooled by the log scale on this chart. The level of the 1990 peak is around 39.000. From current levels, that means an upside potential of around 25%.

This break also, at the same time, limits the downside risk as the previous horizontal resistance level can now be expected to return as support in case of setbacks.

Hong Kong

How different are things looking for the Hang-Seng index…

This market just convincingly dropped below its previous low, which opened up the way for a further decline toward the 2022 low near 15.000. From current levels, that means around 20% downside while the upside is now capped at the breakout level near 19.000.

How To Play

Exposure to these international stock markets can easily be created through ETFs that are quoted on US exchanges (in USD). Two widely used ETFs are EWJ for Japan and EWH for Hong Kong. As long as you realize that by using an ETF quoted in USD to trade a market that is traded in another currency implies a currency risk in your portfolio, you’ll be fine.

The chart below clearly shows that the price development for EWJ is quite different from $NIKK (which is what EWJ is tracking)

The top chart shows the ratio between $NIKK and EWJ. The lower chart shows the $USDJPY exchange rate. As you can see, that $USDJPY exchange rate pretty much entirely explains the difference between the $NIKK cash index in JPY and EWJ in USD.

The problem with buying EWJ is that you will also get a long position in JPY against USD which is not a preferred position at the moment as USD/JPY has just broken important resistance levels and seems to be underway for a further rise.

So from a portfolio management perspective, this is a force to be aware of as it has a negative effect at the moment.

For EWH, the impact is negligible as the $USDHKD exchange rate is pegged and hardly fluctuates.

As the expected fluctuations in the underlying markets ($NIKK and $HSI) are pretty significant, the potential profit from the directional moves in these stock markets will likely offset the drag from the exchange rate.

Here is the chart of EWJ in the top half and the ratio EWJ:EWH in the bottom half.

#StayAlert, –Julius

Julius de Kempenaer
Senior Technical Analyst, StockCharts.com
CreatorRelative Rotation Graphs
FounderRRG Research
Host ofSector Spotlight

Please find my handles for social media channels under the Bio below.

Feedback, comments or questions are welcome at [email protected]. I cannot promise to respond to each and every message, but I will certainly read them and, where reasonably possible, use the feedback and comments or answer questions.

To discuss RRG with me on S.C.A.N., tag me using the handle Julius_RRG.

RRG, Relative Rotation Graphs, JdK RS-Ratio, and JdK RS-Momentum are registered trademarks of RRG Research.

Julius de Kempenaer

About the author:
Julius de Kempenaer is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on StockCharts.com in July of 2014.

After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers).
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Buy CLCT? AA REIT and IREITs’ rights issues OTW.

For readers who who are not subscribed to my YouTube channel or who simply prefer reading blogs to watching videos, I produced 2 videos recently and these are the transcripts.

This was a comment from a reader yesterday.

1. For Capitaland China Trust, do you think sentiments towards China are overly pessimistic?

Hence, could the Trust be trading at a fair price 

2. I am sure you saw the right issue on AIMS APAC Real Estate Investment Trust.
AK had this to say about China.
For CapitaLand China Trust, I am just holding on to what I have now.
After seeing how China handled the COVID-19 pandemic and also what they did to their biggest tech companies, I don’t really know how to read investments in China now.
Another reader said this about Capitaland China Trust.
Hard to wait for the banks when REITs like Capitaland China Trust kept enticing me with lower and lower prices. How like that?

AK said to the reader.

I have been holding on to my position in Capitaland China Trust and not done any buying or selling.
I am not sure as I am more wary of policy risks in China than anything else right now.
Jamie Dimon, CEO of JP Morgan, said this in a recent interview.
China is a far more complex situation now.
He was mostly referring to policy risks, but he was also concerned about geopolitical risks.
Too much uncertainty caused by the Chinese government.
We can also see that Chinese economic recovery has been weak and, to be honest, I agree that much of it has been self-inflicted.
It is not hard to understand that I would rather put more money into investments I have less to worry about.
AK is becoming timid with age.

I had this to say about AIMS APAC real estate investment trust.

The proposed rights issue is relatively small, but it is necessary so that the REIT does not take on more debt to grow organically.
The sponsor has also thrown its weight behind the exercise.
The sponsor, which holds about 75 million units, or about 10% of the total units in the real estate investment trust, has provided an irrevocable undertaking to the manager and the joint bookrunners and underwriters, which include DBS Bank.
The sponsor will accept, subscribe and pay in full for its total provisional allotment of the new units under the preferential offering.
They will also make applications for the number of excess new units under the preferential offering which are not taken up by other unitholders.
Hence, demonstrating their confidence in the real estate investment trust.

The exercise will raise around $100 million through the private placement and preferential offering.

Private placement is to place about 56 million to 58 million units at an issue price of about $1.21 to $1.25 per unit to raise proceeds of $70 million.
The non-renounceable preferential offering or rights issue will raise another $30 million.
This is through the issuance of about 25 million new units to existing eligible unitholders at about $1.19 to $1.23 per new unit.
Existing unitholders will be eligible to an advanced distribution of between 1.7 cents to 1.9 cents per unit.
This would be for the months of April and May.
The record date to be entitled to the advanced distribution and the eligibility to participate in the preferential offering is at 5pm on June 9.

The funds raised will help unlock greater value organically through active enhancement and re-development strategy.

It will also help to secure growth opportunities through targeted acquisitions.
I rather like rights issues which raise money in order to generate more income for the investors.
This is a relatively small rights issue and, therefore, not too demanding.

If AK can talk to himself, so can you!

(Continue scrolling down to read about IREIT Global and its rights issue.)
REITs and rights issues.

I have said before that I rather like rights issues if the money raised is used to generate more income for investors.

In the latest fund raising exercise by IREIT Global, this seems to be the case.
They are proposing to acquire 17 retail parks in France.
A strong reason to invest in these assets is that this retail format will continue to outperform in the context of global inflation partly caused by the COVID-19 pandemic.

“The popularity of hard discounters, discounters and outlet stores in France has risen exponentially in recent years.

“Retail Parks, an Out-of-Town asset class, have been resilient through the COVID-19 pandemic due to their accessibility, open-air format, wide range of available spaces, parking facilities, manageable operational cost, value-for-money brands and for some retailers, omni-channel experiences.”

These 17 retail parks are leased to B and M Group, a European discount retailer listed on the London Stock Exchange with a market cap of about 4.7 billion Sterling Pounds.

They have been occupying these assets since 2005 on average.
There is a Weighted Average Lease Expiry of 6.8 years but there is an option for lease break 4.6 years from now.
A combination of competitive rents due to out-of-town locations and a resilient retail model which is discount retailing suggests to me that this is a good investment.
Of course, all investments are good investments at the right price.
The asking price is approximately $112 million.
This gives approximately 1.7% discount to the average of the two independent valuations of approximately $114.1 million.
The price is very close to valuation.
Although this might suggest that we are not getting a fantastic deal, it also suggests that this kind of properties is probably in high demand.
The seller isn’t desperate to sell.

However, similar to the purchase of Woolworth’s HQ in Australia by AIMS APAC real estate investment trust, I like that these 17 properties in France have excess plot ratios which could be developed for more rental income in future.

I would take this potential into consideration since we should always have a long term perspective when investing in good income producing properties.
So, apart from rental escalation being pegged to inflation, this could be another way to extract more income from the assets.
When we take into consideration that new developments of such assets are being restricted in future due to new French regulations, these assets will become even more valuable in future.

This reminds me of Saizen REIT when its properties were valued at under replacement cost.

No one in his right mind would construct a new building when buying an old one would be much cheaper, and would give similar or higher rental yields.
So, the assets Saizen REIT was holding were undervalued.
In the case of out-of-town assets in France, new ones are apparently not allowed by law.
With the future in mind, we could make the case that these assets could be undervalued.
Of course, having these properties in the portfolio would reduce concentration risk which has been a major pain point for many investors forever.
I don’t really care for the other advantages put forth by the management.

The next thing I want to know is how the acquisition is going to be funded and whether it is going to be yield accretive.

Apparently, it is going to be yield accretive.
Pro forma adjusted FY2022 accretion of 2.0% was computed based on audited FY2022.
This is with the assumption that Darmstadt Campus is 100% vacant for FY2022 from 1 January 2022 with nil revenue but with operating expenses.
OK, how much do investors have to pay?
Cost of properties = $112 million.
Expenses related to purchase = $20 million.
Now, I know how people paying ABSD in Singapore feel.
The deal will be funded by the following.
1. A non-renounceable underwritten preferential offering of new Units to existing Unitholders on a pro rata basis or a rights issue.
2. External bank borrowings.
3. Borrowings from Tikehau Capital.

Both Tikehau Capital and City Developments Limited, the joint sponsors, and the manager, will subscribe in full their allotment in the rights issue.

They will also subscribe to excess units which other investors do not take up, such that their aggregate subscriptions would amount to a maximum of $40 million.
IREIT Global has a market capitalization of around $550 million.
As the sponsors jointly hold about 50% of the total units issued, without further information, I can only hazard a guess that we would see around 10% increase in the number of units issued.
We could assume that approximately 168 million new Preferential Offering Units might be issued at an illustrative issue price of 45 cents per Preferential Offering Unit.
This could raise gross proceeds of approximately $75 million.
So, if we like this proposed investment in French retail parks, we have to be ready to increase our investment in the real estate investment trust by about 10% through the rights issue.
If AK can talk to himself, so can you.

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#Buy #CLCT #REIT #IREITs #rights #issues #OTW

ChatGPT is the Future of Trading

March 15, 2023

Artificial intelligence brings the potential to change the world, and it’s already impacting financial markets. ChatGPT and other generative AI models can bring algorithmic trading to all retail traders, even those with minimal technical backgrounds. In this article, learn about other artificial intelligence software, like Capitalise.ai, designed for trading.

ChatGPT’s launch in late November caused uproar across multiple industries, but retail traders have eagerly embraced the powerful tool. Let’s examine if ChatGPT can build your next forex trading strategy – and how other tools such as Capitalise.ai can help you harness the power of artificial intelligence trading today.

ChatGPT is a natural language processing tool developed by OpenAI, an American artificial intelligence research and deployment company. The AI application was trained on large language models to generate articulate and seemingly human answers to any question. While ChatGPT does not get every answer right, it’s still in the early stages of development and it is already strong enough to have taken the world by storm.

Already several corporations have partnered with OpenAI. In early February 2022, Microsoft integrated a chatbot modeled after ChatGPT in its own Bing search engine. There will no doubt be many more high-level applications for ChatGPT in the future, but so far, traders still have  several hoops to jump through when creating trading strategies using ChatGPT.

How to create a trading strategy with ChatGPT

To create a trading strategy with ChatGPT, you can request it to code a specific strategy and parameters. To do this, you must conduct your own technical analysis to get an idea of the parameters you want to specify, designing the logic of the trading strategy and how it will execute trades. You will then need to backtest the strategy using historical market data, which requires coding or building the script into a trading platform.

Traders are also advised to understand the programming language used by ChatGPT so they can double check for any errors or anomalies in the script; because the consequences of code gone awry can be a costly mistake.

Is using ChatGPT to create a trading strategy a good idea?

ChatGPT might seem like a goldmine for forex traders looking to leverage artificial intelligence to increase their trade profitability. However, there are several limitations to ChatGPT’s capabilities to automate a forex trading strategy. For example, the natural language processor has only been trained on data published before 2021, so it has no ability to monitor live markets and suggest relevant strategies.

ChatGPT can suggest generic strategies based on the technical analysis data you give it. The generative AI software can even create trading algorithms if you feed it enough data. Since the release of ChatGPT, many traders have used the software to develop rudimentary algorithmic trading strategies to automate their trades. This highly automated style of trading is prized by traders seeking to eliminate emotion, increase trading speed, and maximize a trading strategy’s potential.

However, ChatGPT is not a perfect equivalent to traditional algo trading software. Traders still need a strong knowledge of programming languages to double-check the strategies it develops.

Many traders have already found inaccuracies while testing the software. Even OpenAI chief executive Sam Altman tweeted in December “it’s a mistake to be relying on [ChatGPT] for anything important right now.” Altman went on to write that OpenAI has a lot of work still to be done to ensure robust and accurate answers.

It’s important to remember ChatGTP was not developed for trading nor designed by traders. Several issues can arise when using the AI to create algo strategies:

  • ChatGPT lacks an understanding of the forex market, so traders need to ensure they are inputting the necessary information into the chatbot to receive a reliable strategy
  • ChatGPT cannot conduct quality assurance on the strategies it develops. Because the AI does not have access to recent market information, there is no way to use ChatGPT to backtest new trading strategies
  • You still need to understand whatever programming language you ask ChatGPT to script in. Because the AI is prone to bugs, you should be able to find and correct any bugs generated in the script
  • There is currently no easy way to integrate ChatGPT into your trading platform. This means you will have to completely transfer over any programming code that is  generated by ChatGPT into your trading platform
  • OpenAI has launched a subscription plan for ChatGPT, suggesting free users will not have complete access to the AI software in the future

How to trade forex with an AI trading bot

While ChatGPT has grabbed the most headlines, other AI trading software platforms are available to retail traders. For example, AI trading bots feature more extensive applications for forex trading and much easier integration compared to ChatGPT. These AI trading bots allow you to write out ‘if-then’ strategies and turn them into a coded algorithm strategy. The bots will then backtest your strategy against historical data and run it automatically.

Compared to ChatGPT, AI trading bots are designed to integrate seamlessly with platforms like TradingView and the FOREX.com web and mobile apps. This makes it an extremely functional application for forex traders looking to begin algo trading.

One popular AI trading bot is Capitalise.ai, an application designed for trading which bridges the gap between natural language technology like ChatGPT and algorithmic trading models used by the largest players in the forex markets. This can minimize the learning curve when looking to add algorthmic trading to the retail trader’s arsenal.

What is Capitalise.ai?

Capitalise.ai is a text-based AI solution for trading analysis, market monitoring, and trading automation. While it works similarly to ChatGPT, Capitalise.ai was designed specifically for trading. The software turns plain English commands into detailed algo trading strategies to allow traders the resources to automate their trading with algorithmic models, regardless of their technical background or lack thereof.

Capitalise.ai integrates seamlessly with TradingView. Any indicator on the charting platform can be used to trigger the automated trading strategies that you want to develop. Once conditions are met, Capitalise.ai will automatically execute your trade and can even notify you via a mobile alert or email. The AI trading software can also provide guides and examples on how to enter and exit positions based on different trading strategies.

Learn more about automating your trading strategies with Capitalise.ai or watch our free webinar on getting started with Capitalise.ai on FOREX.com.

How to use Capitalise.ai in forex trading

Follow these easy steps to start using Capitalise.ai to automate your forex trading:

On your desktop:

  1. Create a free Capitalise.ai account here
  2. Connect it to your FOREX.com account
  3. Agree to the terms and conditions set by Capitalise.ai
  4. Start creating automated strategies

On your mobile device:

  1. Download Capitalise.ai for Apple or Android
  2. Select FOREX.com under ‘login via partners’
  3. Select ‘free sign up’ to create your Capitalise.ai account
  4. Connect it to your FOREX.com account
  5. Agree to the terms and conditions set by Capitalise.ai
  6. Start creating automated strategies on your mobile device

Best Regulated Broker: https://rb.gy/umqw1

Best Prop Firm: https://rb.gy/jfuw0

FX VPS: https://rb.gy/ygncd

Good luck!

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#ChatGPT #Future #Trading

Chinese tech entrepreneurs keen to ‘de-China’ as tensions with US soar By Reuters

© Reuters. FILE PHOTO: Flags of U.S. and China are seen in this illustration picture taken August 2, 2022. REUTERS/Florence Lo/Illustration

By David Kirton

SHENZHEN, China (Reuters) – For the ambitious Chinese tech entrepreneur, expanding into the U.S. just keeps getting harder.

Before 2019, there were few major impediments to having a Chinese company that did business in the U.S. from China. But amid escalating U.S.-Sino trade tensions, particularly after Washington slapped sanctions on telecom giant Huawei, some Chinese firms began setting up headquarters overseas – moves that could help them draw less U.S. government attention.

Now, some mainland China tech business owners say they need to go further and gain permanent residency or citizenship abroad to avoid the curbs on and the biases against Chinese companies in the United States.

Shenzhen-based Ryan, who declined to give his family name due to fear of reprisals in China, says his three-year-old software startup has reached the point where it would be natural to expand in the U.S. – the world’s biggest economy. His firm already has a million users in East Asia and a strong base in North America.

But he’s dismayed by the U.S.-China trade spats and the restrictions on a growing number of Chinese companies that have been imposed, or are being proposed, by U.S. lawmakers.

“It’s very unfair,” he said, lamenting that competitors from other countries did not face similar issues when trying to expand into the United States.

“We feel a lot like the filling sandwiched in the middle of a biscuit.”

His solution? He’s trying to gain permanent residency in another Asian country.

Reuters spoke to seven tech entrepreneurs from mainland China, most of them educated overseas, who would like to expand their businesses in the United States. All are trying to gain permanent residency or citizenship elsewhere, with most exploring a range of options including Hong Kong, Canada, Japan, the United States and Singapore.

Of the seven entrepreneurs, three agreed to be identified by their English first names only while the others requested complete anonymity, all citing concerns about repercussions within China. They also asked that their businesses not be described in detail.


While U.S.-China tensions may have been given new impetus under the Trump administration which levied tariffs broadly and imposed sanctions on Huawei, the friction has continued unabated under President Joe Biden as both countries vie for global tech pre-eminence.

Major flashpoints include U.S. export curbs on chips and data security concerns that have seen ByteDance-owned TikTok banned on U.S. government devices and altogether by the state of Montana. For its part, China recently blocked key industries from using Micron Technology (NASDAQ:) products and has sought to rein in foreign consultancies and due diligence firms.

Geopolitical tensions have meant a far less friendly atmosphere for mainland Chinese companies wanting to operate or gain funding in the United States, the entrepreneurs and consultants say.

“The political narrative in Washington DC and in many state capitals is based on the misconception that all Chinese companies are intertwined with and taking direction from the Chinese government and the Chinese Communist Party,” says James McGregor, chairman for Greater China at U.S. communications consultancy APCO Worldwide.

The U.S. Commerce Department did not respond to a request for comment on attitudes towards Chinese companies within the United States.

China’s foreign ministry said in a statement that some Western countries want to “politicize technology, putting up obstacles to regular technology and trade cooperation, which benefits neither side, and adversely affects global technological advancement and economic growth.”


But even if expanding into the United States has become that much harder, it is still the end goal for most of the entrepreneurs Reuters spoke to. Focusing on the domestic market is hardly an attractive option despite its size, they added.

A two-year regulatory crackdown on China’s once-freewheeling technology sector from late 2020 – which overlapped with draconian zero-COVID curbs during the pandemic – has led to their disillusionment with China under Xi Jinping.

“Everything changed during the pandemic,” said entrepreneur Wilson, who began looking for ways to move his software startup abroad after Xi won an unprecedented third term last year.

He said that while it was not impossible to do business from China, distrust between Washington and Beijing had become such that “it’s easier for my employees, for my shareholders, if I’m out.”

China’s State Council of Information Office (SCIO) and foreign ministry did not respond to requests for comment on efforts by some entrepreneurs to move abroad or their expressions of disillusionment with China.

Firms looking to rebase offshore and even “de-China” in terms of company identity have become a trend, said Shenzhen-based Chris Pereira, who runs business consulting firm North American Ecosystem Institute.

Companies that have visibly de-emphasised their Chinese identity include online fast-fashion retailer Shein which has made a Singapore firm its de facto holding company. In early May, e-commerce firm PDD Holdings moved its headquarters from Shanghai to Dublin.

Shein declined to comment and PDD did not respond to a request for comment.

So far this year, Pereira’s firm has had around 100 inquiries from mainland companies seeking help to expand abroad. Pereira said he advises many on how to effectively localise overseas and become part of a community as opposed to just masking their Chinese identity.

The entrepreneurs said they were unconvinced by Beijing’s expressions of support for private business owners and were worried about the loss of civic freedoms. Being ambitious in China also often entails cultivating ties with the Chinese Communist Party – a step they are reluctant to take, some of them also said.

Tommy, another entrepreneur, has moved abroad from China, dispirited after government censorship requests concerning his product became too frequent and intrusive, leading him to shut down the business.

The SCIO did not respond to a request for comment on how censorship affects businesses in China.

Tommy is now setting up a new startup and eventually would like to move to the United States – that’s despite having been questioned at length by U.S. customs officials as to why he had a U.S. bank account when on a recent business trip there.

The U.S. Customs and Border Protection agency did not respond to a request for comment.

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#Chinese #tech #entrepreneurs #keen #deChina #tensions #soar #Reuters