This doesn't work in trends, only in sideways markets

RSI: The Trader's Secret Weapon! How to Use It and When to Enter?

The Relative Strength Index (RSI) is one of the main indicators that will help you catch reversals and enter trades on time. But many use it incorrectly! Let's figure out how to apply it wisely.

What is RSI and why is it needed?

RSI shows whether an asset is overbought or oversold:
• Above 70 – a downward reversal is possible.
• Below 30 – wait for a bounce upwards.

But that's not all! The main thing is to catch divergences (discrepancies between RSI and price) and consider the trend.

How to use RSI for powerful trades?
1. Overbought/Oversold – lock in profits or look for entry.
2. Divergence – a signal for a strong movement.
3. RSI above 50 → trend up, below 50 → trend down.

⚡ Tip: combine RSI with EMA and MACD for maximum accuracy!

The main mistake – trading RSI without confirmation!

In a trend, the price can stay above 70 or below 30 for a long time. Don't rush, wait for signals!

🔥 Conclusion: RSI is the key to profitable trades if you know how to use it. Now you know!