MSI breaking below -1500 is considered overbought. The use of momentum indicators can warn of building strength or weakness in a market, often well ahead of a change in trend. A simple 10 day MA, for example, adds up the last 10 days' closing prices and divides the total by 10. Each day the procedure is repeated. A succession of higher peaks is bullish.
Lower peaks are bearish.
The difference between the high and low prices for a given period. Also see Support and Trendlines . Greater selling pressure will produce a negative DI and usually lower prices. See also exponential moving average. Lines are drawn at an angle from the starting point of a trendline.