Beginner's Guide: Use RSI to Spot Overbought and Oversold Levels with Tally Prime

📈 Beginner’s Guide: Use RSI to Spot Overbought and Oversold Levels with Tally Prime

Trading is not just about buying and selling — it’s about timing your moves using the right technical indicators. One such indicator that every trader should master is the Relative Strength Index (RSI).

At AI Computer Classes – Indore, we combine technical trading concepts with practical software skills like Tally Prime, Excel, and ChatGPT to help students and professionals make smarter financial decisions.

💡 What is RSI (Relative Strength Index)?

RSI is a momentum oscillator that measures the speed and change of price movements. It helps traders identify overbought and oversold market conditions.

📊 RSI Scale:

• Above 70 → Market is Overbought (Possible Sell Signal)
• Below 30 → Market is Oversold (Possible Buy Signal)

For example:

If a stock’s RSI value is 82, it may soon experience a correction. If it’s 22, it could rebound soon.

💬 Learn Stock Market Tools Practically!

At AI Computer Classes – Indore, we teach how to apply RSI insights in real-time charts and integrate them with tools like Tally Prime, Excel, and Power BI for financial reporting.

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📊 Step 1: Understanding RSI on Trading Platforms

Before connecting it with Tally, first understand RSI behavior on charting tools like TradingView or Zerodha Kite.

1. Open any stock chart.
2. Add the RSI Indicator from the indicator menu.
3. Observe when RSI crosses the 70 or 30 lines.
4. Confirm signals with candlestick patterns for accuracy.

💡 Pro Tip: Don’t rely only on RSI. Combine it with support/resistance and volume analysis.

💼 Step 2: Integrating RSI Insights with Tally Prime

Tally Prime isn’t just for accounting — it can help you analyze stock data, track performance, and generate reports when used creatively.

Here’s how:

1. Export your RSI-based trading data (from Excel or TradingView).
2. Import it into Tally Prime as a custom report or stock ledger.
3. Tag each stock as “Buy,” “Sell,” or “Hold” based on RSI levels.
4. Use Tally reports to visualize profit/loss and trends.

📘 This practical integration is taught at AI Computer Classes to make financial learning hands-on and industry-ready.

⚙️ Step 3: Automate RSI Calculations Using Excel + ChatGPT

You can calculate RSI in Excel using the following columns:

DayClosing PriceGainLossAvg GainAvg LossRSRSI

💬 Then, use ChatGPT to generate formulas or VBA macros automatically!

Prompt example:

“Generate Excel formula to calculate RSI for 14-day period using closing prices.”

This gives you real-time automation without relying on premium charting software.

🔍 Step 4: Interpreting RSI Signals

RSI ValueMarket ConditionActionAbove 70OverboughtConsider Selling50–70Neutral to BullishMonitor Trend30–50Neutral to BearishWait for ConfirmationBelow 30OversoldConsider Buying

✅ Always confirm RSI signals with chart patterns before trading.

🧠 Step 5: Practice Exercise

At AI Computer Classes – Indore, students get a practical mini-project:

• Select 5 stocks from NSE.
• Record their RSI for 10 days.
• Analyze and create a Tally report summarizing buy/sell signals.

This helps learners connect technical indicators with financial accounting tools — a powerful combo for smart trading.

📈 Advantages of RSI

• Identifies entry and exit points quickly
• Simple and beginner-friendly
• Works across all timeframes (daily, weekly, monthly)
• Useful for both intraday and long-term traders
• Can be automated using Excel or Power BI

💬 Conclusion

By mastering RSI and integrating it with Tally Prime, you bridge the gap between technical trading and financial management — making you a more informed and confident trader.

At AI Computer Classes – Indore, we teach exactly that — the balance of technical skill and financial understanding with tools like Tally, Excel, and ChatGPT.

🎯 Learn practically. Trade smartly. Analyze confidently.

📞 Contact AI Computer Classes – Indore

✉ Email: hello@aicomputerclasses.com

📱 Phone: +91 91113 33255

📍 Address: 208, Captain CS Naidu Building, near Greater Kailash Road, opposite School of Excellence For Eye, Opposite Grotto Arcade, Old Palasia, Indore, Madhya Pradesh 452018

🌐 Website: www.aicomputerclasses.com