✅ What is the Relative Strength Index (RSI) and how do you use it in analysis on Binance? 🟡
The Relative Strength Index (RSI) is a technical analysis tool used to determine whether a cryptocurrency is in an overbought or oversold condition.
RSI is displayed as a number between 0 and 100, helping traders make smart entry or exit decisions.
📊 How do you interpret RSI numbers?
Above 70: The cryptocurrency is in an overbought condition – a correction may be coming (selling opportunity)
Below 30: The cryptocurrency is in an oversold condition – the price may bounce back (buying opportunity)
Between 30 and 70: Neutral zone – does not indicate overbought or oversold
📲 How to use RSI on Binance (app or website):
1. 🔐 Log into your Binance account.
2. 📈 Go to the "Trade" section and open the chart for the cryptocurrency you are following (for example, USDT$/82972253640).
3. ⚙️ Click on "Indicators," then choose RSI.
4. 🟪 A window will appear at the bottom of the chart showing the RSI line.
🧠 Practical example:
Suppose the RSI for cryptocurrency 41963064037 has reached 78
→ This indicates that the cryptocurrency may be in an overbought condition.
If it drops to 25
→ This means that the cryptocurrency is in an oversold condition.
⚠️ Important tips:
Do not rely on RSI alone – use it with other analysis tools.
The RSI indicator is especially useful in sideways (non-trending) markets.
It is preferable to adjust the time frame according to your strategy (e.g., 1h, 4h, daily).