newscrypto

If you're new to trading crypto, you might have heard people talk about RSI. It’s a basic tool that helps you understand when a coin might be too high (overbought) or too low (oversold). Let’s break it down in the simplest way.What is RSI?
RSI stands for Relative Strength Index. It shows the strength or weakness of a coin’s recent price movements. RSI is a number between 0 and 100.
When RSI is above 70, it usually means the coin is overbought — price may fall soon.
When RSI is below 30, it usually means the coin is oversold — price may rise soon.
Think of it like a "heat meter" — it helps you see if a coin is hot (too high) or cold (too low).
How to Use RSI in Trading
Many traders use RSI to decide when to buy or sell. For example:
If a coin has RSI near 30, it might be a good buying opportunity.
If RSI is near 70, it might be time to be cautious or take profit.
But here's the most important thing:
👉 Don’t use RSI alone.
Sometimes RSI drops not because the price is naturally correcting, but because of bad news — like a coin getting delisted, tagged as risky, or facing some issue. In such cases, RSI can fall very low, but it's not the right time to buy.
You Remember OM, Portal and many other coins..
RSI is just a tool — it works best when used with other things like support levels, trends, and news.
Understanding RSI Levels
Here’s a quick look at common RSI levels:
70 and above – Overbought (coin may go down)
30 and below – Oversold (coin may bounce up)
Around 50 – Neutral zone (no strong trend)
Use RSI mostly on 4-hour or daily charts — shorter timeframes (like 15 min) can be confusing for new traders.
What About RSI Divergence?
This is a simple signal that can hint a trend change:
If price goes up, but RSI doesn’t, it means the move may be weak.
If price drops, but RSI starts rising, it may signal a bounce is coming.
This can help you spot early reversals. RSI is a helpful tool to understand the momentum of a coin, but never rely on it alone. Use it with other tools and always be aware of the news. A sudden announcement can move the market, no matter what RSI says.
In Short:
RSI helps you guess if a coin is too high or too low.
Use RSI with other tools — not alone.
Don’t buy just because RSI is low. Check the news and overall market.
Be patient — smart trading is about timing, not rushing.
I have simplify RSI but if you still have any confusion.. Ask me in comment section.
Disclaimer: This post is for learning purposes only. Always do your own research before making any trade.
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