The Trading Minute: Understanding the RSI

Today, we talk about the RSI, one of the simplest indicators to detect trend reversals.

What is it?

The RSI (Relative Strength Index) measures the strength of a movement. It ranges from 0 to 100.

Why is it useful?

RSI > 70 = overbought → beware of a correction.

RSI < 30 = oversold → buying opportunity?

Example today on ETH/USDT:

RSI around 75 → the price has risen very quickly, we might soon see a small pullback.

Quick conclusion:

It's better to wait for a small pullback to buy at a better price.

Try analyzing the RSI on your favorite cryptos!