Relative Strength Index (RSI):
Measures how saturated the market is with buying or selling.
· Above 70: The asset is in an overbought state (a drop may occur soon).
· Below 30: The asset is in an oversold condition (a rise may occur soon).
· It is used to identify trend reversal points, especially when a divergence occurs (e.g., the price is going up but the RSI is going down).
2- MACD indicator:
Measures momentum and gives signals about the trend.
· Fast line (MACD) crosses above slow line (Signal Line): bullish signal.
Fast line crosses below slow line: bearish signal.
· The intersection of the lines with the zero line: confirms the upward or downward trend.
- How to use together:
· If RSI is above 70 and MACD gives a bearish crossover → bearish probability.
· If RSI is below 30 and MACD gives a bullish crossover → bullish possibility.
- The compatibility of signals from the two indicators gives stronger opportunities for entry and exit.
Note: The indicator may be wrong with news fluctuations.
Finally, it is not financial advice, but just information.
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