📊 What is the RSI Indicator? And how does it help you make better trading decisions?
The Relative Strength Index (RSI) is one of the most popular technical indicators among traders, used to determine whether a financial asset is in a state of overbought or oversold.
🔍 How does RSI work?
RSI measures the strength or weakness of recent price movements on a scale from 0 to 100:
When RSI is above 70 ➜ the asset is considered overbought, and there may be a chance of a decline or profit-taking.
When RSI is below 30 ➜ the asset is considered oversold, and there may be a chance of a rebound or rise.
⚠️ But beware! RSI does not always give direct buy and sell signals, but is used with other indicators or support and resistance analysis to confirm the decision.
🎯 Examples of using RSI:
Buy when RSI is below 30 and a strong reversal candle appears.
Sell or reduce exposure when RSI exceeds the 70 level with weak momentum.
📈 Do you use RSI in your strategy? Share your experience or
$BNB your inquiries in the comments below👇
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