- Explanation of the RSI and MACD indicators and how to benefit from them?
1- Relative Strength Index (RSI):
Measures the extent of the market's saturation with buying or selling.
· Above 70: The asset is in a state of overbought (a decline may occur soon).
· Below 30: The asset is in a state of oversold (a rise may occur soon).
· It is used to identify trend reversal points, especially when a divergence appears (for example, the price is rising but the RSI is falling).
2- MACD Indicator:
Measures momentum and gives signals about the trend.
· The fast line (MACD) crosses above the slow line (Signal Line): A bullish signal.
· The fast line crosses below the slow line: A bearish signal.
· The lines cross with the zero line: Confirms the bullish or bearish trend.
- How to use them together:
· If the RSI is above 70 and the MACD gives a bearish cross → a bearish possibility.
· If RSI is below 30 and MACD gives a bullish crossover → bullish probability.
- Consistency of signals from both indicators gives stronger entry and exit opportunities.
