📉 RSI — indicator of trend strength. When to buy and when it's better to wait?
RSI (Relative Strength Index) — an indicator that shows whether an asset is overbought or oversold.
🔢 It ranges from 0 to 100:
70+ — overbought. Possible pullback or reversal ⛔
30- — oversold. Possible buying opportunity at the bottom ✅
50 — neutral zone, the trend is still forming.
📊 How do traders use this?
If RSI exceeds 70 — it's wise to be cautious with purchases.
If RSI is below 30 — it's time to look for a buying entry point.
⚠️ But RSI alone does not provide guarantees — it's better to combine it with other indicators.
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👁🗨 Conclusion: RSI will help you avoid buying at highs and selling at lows. Just look at how "exhausted" the market is.
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