📈 How to Use the RSI Indicator Professionally in Trading? (Quick Guide for Beginners) 🔥
💡 Did you know that the RSI (Relative Strength Index) is one of the strongest technical analysis tools that can save your trade from loss or help you identify the best entry points?
📌 What is RSI
An indicator that measures the strength of price movements on a scale from 0 to 100, and is used to determine:
✔ Overbought → above 70
✔ Oversold → below 30
🚀 3 Ways to Use RSI Effectively:
1️⃣ Trading at Retracements from Extremes
- If RSI reaches above 70 → potential bearish reversal (selling opportunity).
- If RSI drops below 30 → potential bullish reversal (buying opportunity).
2️⃣ Breakouts and Strong Trends
- In an uptrend, RSI may stay above 50 for extended periods.
- In a downtrend, it may remain below 50 as a signal of continued decline.
3️⃣ Divergence for Strong Signals
- If the price is rising and RSI is falling → warning of a potential bearish reversal.
- If the price is falling and RSI is rising → signal of a potential bullish reversal.
⚠️ Warning: Do not rely on RSI alone! Combine it with other indicators like moving averages or MACD to increase accuracy.
💬 Have you tried using RSI before? Share your experience in the comments!