This week, I used the RSI (Relative Strength Index) in a way that helped me spot a reversal early. A mid-cap altcoin had been trending down for weeks. But something caught my eye — RSI dropped below 30, signaling extreme oversold conditions. I switched to a lower timeframe and saw bullish divergence forming. Price was making new lows, but RSI was making higher lows. That’s often a clue that momentum is shifting. I entered a small long and added on confirmation of a higher low. Over the next two days, the coin bounced back 20%. I scaled out gradually. This trade taught me that RSI isn’t just for overbought/oversold signals — it’s a momentum indicator. Divergences can signal powerful shifts. I now combine RSI with price structure and volume to confirm trades. It adds an edge to my setups and helps avoid false signals. Technical indicators work best as part of a system — not standalone tools.
