Open short: reversal signal (top divergence (double top high point gradually lower (indicator (RSI (oscillation (15-85), 1 minute, wrsi (long (0-30 down red), short (80up up green)) #RSI #事件合约 #DeepSeek $BTC
Relative Strength Index (RSI) is a momentum indicator commonly used in technical analysis. It is used to measure the speed and amplitude of price changes and help determine overbought or oversold conditions. The following is a detailed interpretation of RSI
### **2. RSI general parameters**
- **Period**: 14 days by default, short periods (such as 7 days) are highly sensitive, and long periods (such as 21 days) are smoother.
- **Threshold**:
- **Overbought zone**: RSI ≥ 70, suggesting a possible callback.
- **Oversold zone**: RSI ≤ 30, suggesting a possible rebound.
- Some traders use 80/20 as a stricter threshold.
### **III. Core Applications of RSI**
1. **Overbought/Oversold Signals**:
- When RSI breaks through 70, be alert to overbought; when it falls below 30, pay attention to oversold.
- **Note**: In a strong trend, RSI may be in extreme areas for a long time, and needs to be combined with trend analysis.
2. **Divergence Trading**:
- **Top Divergence**: Price hits a new high, RSI does not hit a new high → potential down signal.
- **Bottom Divergence**: Price hits a new low, RSI does not hit a new low → potential up signal.
- Divergence needs to be confirmed in combination with other indicators (such as trading volume, trend line).
4. **Phenomenon Analysis**:
- RSI can form head and shoulders top/bottom, double top/bottom and other patterns to assist in judging price turning points.
- Support/resistance lines are also effective in RSI charts.
### **IV. Precautions for Using RSI**
1. **Parameter adaptation**: Adjust the cycle and threshold according to market volatility, such as the cryptocurrency market often uses shorter cycles.
2. **Combined with trends**: In trending markets, avoid counter-trend operations (such as RSI overbought may continue in a strong bull market).
3. **Multi-time frame verification**: For example, when the daily RSI is oversold, observe whether the weekly line is confirmed synchronously.
4. **Combined with other indicators**: such as MACD, moving average, Bollinger Bands, etc., to improve signal reliability.
### **Six, actual combat cases**
- **Case 1 (overbought callback)**: The RSI of a certain stock rose to 75 and then fell back, and the price fell accordingly.
- **Case 2 (bottom divergence reversal)**: The price hit a new low, and the RSI did not break the previous low, and then the price rebounded.
- **Case 3 (Trend Continuation)**: RSI is above 70 for a long time, but the price continues to rise driven by fundamentals.