Using RSI with the Market Carpet

The Market Carpet provides a color-coded visual reference to easily identify stocks with certain RSI levels. Market Carpets can also be used with the Stochastic Oscillator, Bollinger BandWidth, %B, PPO, StochRSI, Price Performance and the Aroon Oscillator. This example will focus on RSI. First, pull up the Sector Market Carpet. Second, change the default indicator “Price Performance” to RSI. Third, click the delta button to turn it white and show absolute levels ranging from 90 to 10.

The Market Carpet above shows the S&P 500 stocks by sector with RSI values. The numbers next to each individual sector heading show the average RSI level for all stocks in the sector. Finance is the strongest with a 66.3 average RSI. Energy is the weakest with a 43.5 average RSI. This is also a good way to identify sectors and stocks showing strength or weakness. Finance shows the most strength, while energy shows most weakness. The right half of the Carpet can be used to see the top 5 and bottom 5 stocks. Click on the name to see the line chart above or click on the chart icons to see a bigger chart in another window.

Click on the sector headings to isolate stocks within that sector. The example below focuses exclusively on stocks in the consumer discretionary with a new list of top and bottom stocks on the right. RSI values are show next to these stocks. Disney has the highest RSI (83.2). H&R Block (HRB) has the lowest (41.3). Market Carpets make it easy find stocks with overbought RSI and oversold RSI. You can also click the Delta button to see which stocks had the biggest change in RSI.