💥 Do you think the phrase "oversold" means it's the right time to buy?
Wrong! This is a trap that beginners fall into 🪤
👉 Today we explain the truth behind RSI — the strongest momentum indicator 📉⚡
Welcome to the second part of the series:
"Understand indicators like a pro" 🔍
And today we have: The Relative Strength Index (RSI)
📌 What is RSI?
The RSI measures momentum — the speed and strength of price movement.
It is displayed on a scale from 0 to 100.
RSI above 70 = Overbought 😮💨
RSI below 30 = Oversold 🩸
But here comes the surprise:
Just because the indicator is below 30 doesn't mean the price will immediately bounce back!
📈 How to use it correctly:
✅ Spotting potential reversals:
Wait for the RSI to return and exceed 30 or drop below 70 — this is the actual signal
✅ Hidden positive divergence:
The price records a lower low, but the RSI records a higher low = 🔥 Strong bullish signal
✅ Negative divergence:
The price records a higher high, but the RSI records a lower high = ⚠️ Warning of a bearish reversal
🧠 Professional tips:
Combine RSI with support/resistance areas for precise entry 🎯
Don't rely on RSI alone — use it with MA or volume for confirmation
RSI gives the best results in sideways markets, not in strong trends
📌 Next article: MACD — The indicator that reveals hidden momentum 🧲🔥
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