Most beginners use RSI the wrong way ๐ฌ
Letโs fix that with a step-by-step trading method anyone can use.
No guessing. Just clear signals ๐๐
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๐งฉ Step 1: Add RSI to Your Chart
On Binance (or TradingView):
1. Tap โIndicatorsโ
2. Select Relative Strength Index (RSI)
3. Set:
โข Period = 14
โข Overbought = 70
โข Oversold = 30
This tool shows when a coin is overbought (likely to drop) or oversold (likely to bounce).
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โ ๏ธ Step 2: Understand RSI Zones
๐บ RSI > 70 = Overbought
๐ป RSI < 30 = Oversold
๐ RSI 50 = Trend direction (above = bullish, below = bearish)
But hereโs the catch:
โ Donโt sell just because RSI hits 70
โ Donโt buy blindly at 30
โ Wait for confirmation with price action (next step ๐)
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๐ฏ Step 3: Combine RSI with Structure
Now use RSI with real price levels to avoid false signals:
Example Buy Setup (RSI < 30):
โข Coin is in an uptrend
โข RSI dips below 30 during a pullback
โข Price touches a support level
โข A bullish candle forms
โ Enter long with SL below the support
โ TP = previous swing high
Example Sell Setup (RSI > 70):
โข Coin is in a downtrend
โข RSI spikes above 70 during a small bounce
โข Price hits resistance zone
โข Bearish rejection candle appears
โ Enter short with SL above resistance
โ TP = recent low
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๐ง Pro RSI Trick: RSI Divergence
This is where beginners start to level up ๐
Bullish Divergence:
โข Price makes a lower low
โข RSI makes a higher low
โ Signal that selling pressure is weakening
โ Look for a bounce
Bearish Divergence:
โข Price makes a higher high
โข RSI makes a lower high
โ Weak upside momentum โ Look to short
These are sniper-level signals ๐ฅท
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โ RSI Strategy Recap:
1. Add RSI (14)
2. Wait for RSI to hit 30 or 70 and reach key support/resistance
3. Confirm with price action (engulfing candles, pin bars, etc.)
4. Use proper SL and TP for each trade
5. Spot divergences for high-probability trades
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RSI is not magic, but itโs deadly when used with price structure and patience.
Use this method today on Binance โ find a trending coin, check RSI, and confirm with price action. Youโll be surprised how accurate it gets โค๏ธ