📊 What is RSI?
RSI = Relative Strength Index
It measures how strong or weak a price move is, based on recent gains vs losses.
The RSI value ranges from 0 to 100.
🟢 Key RSI Levels:
70 or above → 🛑 Overbought → Might pull back or reverse.
30 or below → 🟢 Oversold → Might bounce up or reverse.
50 → ⚖️ Neutral zone → Momentum balanced.
🔍 How to Use RSI in Trading:
1. Overbought / Oversold Reversals
If RSI > 70 → Watch for a potential drop (shorters may step in).
If RSI < 30 → Watch for a potential bounce (buyers may step in).
Tip: RSI alone doesn’t mean "sell now" or "buy now" — it shows a setup, not a signal.
2. Trend Confirmation
In a strong uptrend, RSI may stay above 50–70 for a long time.
In a downtrend, RSI may stay below 50–30.
So instead of betting on reversals, you can also use RSI to confirm trend strength.
3. RSI Divergence
A powerful signal (especially if you're watching price closely):
🐻Bearish divergence:
Price makes a higher high, but RSI makes a lower high → ⚠️ Weakness is building → May drop.
🚀Bullish divergence:
Price makes a lower low, but RSI makes a higher low → 🟢 Momentum is turning → May rise.
💡 How You Can Use RSI Right Now
While waiting in your trade:
Watch if RSI breaks above 60 → 🔼 stronger buying momentum.
If RSI dips below 50 → ⚠️ be cautious — momentum may weaken.
Good Luck!
