What is the RSI Indicator and how does it help you know the buying and selling zones?
The RSI Indicator or Relative Strength Index is one of the most commonly used technical indicators in the crypto market. Its purpose is to tell you whether the currency is in a state of overbought or oversold.
---
🔹 How does the RSI Indicator work?
The indicator ranges from 0 to 100.
If it is above 70 → it means the currency is in a state of overbought (a decline may occur).
If it is below 30 → it means the currency is in a state of oversold (a rise may occur).
---
✅ How to use it as a beginner?
1. If you see the RSI dropping below 30 → watch for a buying opportunity.
2. If you see the RSI rising above 70 → try not to enter a buy position or consider selling.
3. It is best to use it with other indicators (like support and resistance) to increase accuracy.
---
🔑 Summary:
The RSI Indicator helps you know the right time to sell or buy, but it should not be the only tool in your decisions.
---
✦ Don't forget to support me with a like ❤️ and follow 🔔 to receive all the latest in the crypto world 🚀
#Crypto #Trading #RSI #Technical_Indicators #Technical_Analysis #Crypto #Bitcoin #Binance #Web3
