📊 INFORMATION ABOUT THE RSI (Relative Strength Index) is a technical indicator that measures the speed and change in the price movement of an asset. It helps identify possible overbought or oversold situations, which can aid in predicting future corrections or trend continuations.
Key concepts:
✅️Oscillator:
The RSI is an oscillator, meaning it fluctuates between a range of values (0-100).
✅️Overbought/Oversold:
Generally, an RSI value above 70 is considered overbought, suggesting that the price may be close to a downward correction. An RSI value below 30 is considered oversold, which could indicate that the price may be close to an upward rally.
✅️Interpretation:
The RSI not only indicates overbought/oversold conditions but also the strength of price movement. An RSI moving towards 100 indicates a strong upward movement, while one moving towards 0 indicates a strong downward movement.
✅️Use in strategies:
Traders can use the RSI to confirm trends, identify potential entry and exit points, and build trading strategies based on price movement.
🔰In summary, the RSI is a useful indicator for understanding price momentum and making more informed trading decisions. You can enable this RSI at the bottom of the charts.
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