📈 RSI — The King of Momentum Indicators
Want to catch reversals before they happen? RSI is your early warning system.
👉 Learn how to time your entries like a pro using this powerful momentum tool ⚡
Welcome to Episode 13 of:
"Learn Indicators Like a Pro" 🔍
Today’s topic: RSI — Spot Overbought & Oversold Like a Market Sniper
🧠 What Is RSI?
RSI = Relative Strength Index
It measures the speed & strength of price movements on a scale from 0 to 100.
It tells you whether a coin is overbought (likely to drop) or oversold (likely to bounce).
📌 Key RSI Levels:
Above 70 = Overbought (🚨 potential sell signal)
Below 30 = Oversold (📈 potential buy signal)
50 zone = Neutral — market in balance
But wait — it’s not just about numbers. It’s about context.
⚠️ Common Mistake:
RSI hitting 70 ≠ instant dump
RSI hitting 30 ≠ instant pump
👉 In strong trends, RSI can stay overbought/oversold for a long time
🔍 How to Use RSI in Real Trading:
✅ Reversals: When RSI drops below 30 then climbs back above → BUY signal
✅ Divergence: Price making new highs but RSI doesn’t? That’s a bearish divergence
✅ Trend Confirmation: RSI staying above 50 = strong bullish trend
✅ Range Trading: Use RSI in sideways markets to buy low & sell high
🚀 Pro RSI Strategy:
Identify support/resistance zone
Look for RSI divergence near that level
Wait for RSI to cross back above 30 (buy) or below 70 (sell)
Use a tight stop-loss & ride the bounce/reversal
📌 Next Episode: Bollinger Bands — How to Predict Explosions Using Volatility 🧨📊
Follow now to learn how to ride breakouts and avoid fakeouts like a pro!