RSI is one of the most beginner-friendly indicators that can show when a coin is overbought or oversold
Used right, it helps you enter trades before the crowd and exit before the dump 🚀
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🔹 Step 1: What Is RSI?
RSI = Relative Strength Index
It ranges from 0 to 100, showing whether a coin is overbought or oversold based on recent price movement.
• RSI > 70 = Overbought 😬 (possible reversal down)
• RSI < 30 = Oversold 😮 (possible reversal up)
📍 Default setting: 14 periods
Available on TradingView (linked inside Binance charts too)
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🔹 Step 2: Basic RSI Trading Strategy
✅ Buy Signal:
• RSI drops below 30 (oversold)
• Wait for it to bounce back above 30
• Confirm with price structure (double bottom or support)
✅ Sell Signal:
• RSI rises above 70 (overbought)
• Wait for it to drop below 70
• Confirm with resistance or bearish candle
This catches early reversals before the market reacts 🔄
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🔹 Step 3: Hidden Power — RSI Divergence
Divergence happens when price and RSI move in opposite directions.
📌 Bullish Divergence:
• Price makes lower low
• RSI makes higher low
→ Suggests price may reverse upward (accumulation)
📌 Bearish Divergence:
• Price makes higher high
• RSI makes lower high
→ Suggests price may drop soon (distribution)
💥 RSI Divergence = One of the most reliable reversal signals for beginner traders.
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🔹 Step 4: Combine RSI with Key Levels
RSI becomes 🔥 when combined with support/resistance:
1. Mark strong support/resistance levels on chart
2. Wait for RSI to enter overbought/oversold zones at those levels
3. Enter after confirmation from price action (e.g., pin bar, engulfing candle)
✅ This keeps you from trading RSI blindly
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🔹 Step 5: RSI for Trend Traders
RSI isn’t just for reversals!
• In strong uptrends, RSI will stay above 40–50
• In strong downtrends, RSI will stay below 50–60
Use it to ride trends and exit when RSI breaks the zone ✅
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🧠 Pro RSI Tips:
1. Don’t trade RSI alone — combine with price structure
2. Use RSI on 15m or 1H for day trading
3. Use RSI on 4H or 1D for swing trading
4. RSI Divergence + Support/Resistance = 🔒 Reliable setup
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📈 Example Trade:
• BTC dumps to $65K → RSI = 28
• RSI bounces above 30
• You notice support + bullish candle
• You buy at $65.3K → SL = $64.7K
• Target = $66.8K → R:R = 1:2+
Simple, repeatable, low-risk 🚀
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RSI shows you when the crowd is exhausted.
Learn to read it — and you’ll always be one step ahead.