#TradingTools101 🔧 Tool of the Day: Relative Strength Index (RSI)

The RSI indicator is an effective tool that helps you determine whether an asset is in overbought or oversold territory.

How do you read it?

📈 When RSI is above 70 → the asset is in overbought territory → a correction or decline may occur.

📉 When RSI is below 30 → the asset is in oversold territory → we may witness a potential rebound and rise.

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📌 Important Tip:

Do not rely on RSI alone!

✅ It is best to combine it with other indicators like MACD or trading volumes for more accurate entry and exit signals.

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💬 My question to you:

Do you use RSI in your strategy? How do you incorporate it into your decisions? Share your thoughts with me!