📈 RSI Indicator — King of momentum indicators!

Want to discover reversals before they happen? The RSI is your early warning system.

👉 Learn how to accurately set your entry points using this powerful indicator ⚡


Welcome to episode 13 of:

"Understand indicators like a pro" 🔍

Today's topic: RSI — Watch for overbought/oversold and trade like a sniper! 🎯



🧠 What is the RSI indicator?


RSI = Relative Strength Index

Measures the speed and strength of price movement on a scale from 0 to 100

And reveals whether the asset is overbought (may decline) or oversold (may bounce back up)



📌 Key RSI levels:


  • Above 70 = Overbought (🚨 may be a selling opportunity)


  • Below 30 = Oversold (📈 may be a buying opportunity)


  • Around 50 = Neutral zone — Market balance



But be careful — it’s not just the numbers that matter, but the context of the movement as well.



⚠️ Common mistake:


RSI at 70 ≠ Direct drop

RSI at 30 ≠ Direct rise

👉 In strong trends, RSI may stay in overbought/oversold regions for a very long time



🔍 How to use RSI in real trading:


✅ Reversals: If RSI drops below 30 and then rises → Buy signal

✅ Divergence: Price makes a new high but RSI doesn’t? This is a bearish divergence.

✅ Trend confirmation: RSI stays above 50 = Strong upward trend

✅ Sideways market: Use RSI in sideways markets to buy from the bottom and sell from the top



🚀 A professional strategy using RSI:


  1. Identify support or resistance areas


  2. Watch for divergence between price and RSI


  3. Wait for RSI to cross back above 30 (for buying) or below 70 (for selling)


  4. Use a tight stop loss and ride the wave smartly




📌 Next episode: Bollinger Bands — How to predict price explosions using market volatility 🧨📊

Follow me now to learn how to distinguish between a real explosion and a fake trap!