📈 Relative Strength Index (RSI) – “Overbought or Oversold?”
Type: Momentum Indicator
Settings: Default is 14-period RSI
Key Levels:
70+ = Overbought (Possible reversal down)
30− = Oversold (Possible reversal up)
✅ How to Use:
Buy Signal: RSI drops below 30 and starts to rise again (bullish reversal).
Sell Signal: RSI goes above 70 and starts to drop (bearish reversal).
Divergence: Price is going up but RSI is going down (or vice versa) – possible trend reversal ahead.
