💥 RSI (Relative Strength Index)** is a popular technical indicator used by traders and investors to determine whether the market is **Overbought** or **Oversold**. It was developed by **Welles Wilder Jr.** in 1978.
💥 Main uses of RSI:
1. Overbought and Oversold signals:
RSI = more than 70 (price has risen too much, there is a possibility of a decrease).
RSI = less than 30 (price has fallen too much, there is a possibility of an increase).
💥 Divergence:
Bearish divergence : If price makes a new high but RSI fails to do so, a downtrend may occur.
Bullish divergence : If price makes a new low but RSI fails to do so, an uptrend may occur.
