The RSI Episode and How to Use It Professionally

📈 RSI Indicator — The King of Momentum Indicators!

Do you want to discover reversals before they happen? The RSI indicator is your early warning system.

👉 Learn how to precisely 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 and Trade Like a Sharpshooter! 🎯

🧠 What is the RSI Indicator?

RSI = Relative Strength Index

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

And it reveals to you whether the currency is overbought (may drop) 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 equilibrium

But beware — 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 remain in overbought or oversold areas for a very long time

🔍 How to Use RSI in Real Trading:

✅ Reversals: If RSI drops below 30 and then starts to rise → Buy Signal

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

✅ Trend Confirmation: RSI stays above 50 = Strong Uptrend

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

🚀 A Professional Strategy Using RSI:

Identify Support or Resistance Areas

Watch for Divergence Between Price and RSI