#TradingTools101

One of the tools I consider essential in technical analysis is the RSI indicator or "Relative Strength Index". This tool helps you understand if the market is in a state of overbought or oversold, and thus you can sometimes anticipate a trend reversal.

🔍 When the RSI value is above 70, it means that the asset may be in a state of overbought, and there is a possibility of a coming decline.

On the other hand, if it is below 30, this may indicate oversold conditions, and there could be an opportunity for an upward movement.

Personally, I use the RSI with other tools like support and resistance lines to confirm my decisions, and I do not rely on it alone.