📊 RSI on BTC: growth or correction?
RSI (Relative Strength Index) shows the strength and speed of price change (0–100).
- >70: overbought → risk of correction
- <30: oversold → potential rebound
🔍 Data BTC/USDT
- Price: ~$107 000
- RSI(14) 4h: 60
📊 Analysis
1. RSI=60 (neutral).
2. Historically, at such levels, growth continued to the zone >70.
3. Correction signal — RSI leaving >70 downwards.
🛠 Strategy (4h)
1. Wait for RSI in the zone 65–75.
2. RSI>70 → close part of LONG.
3. RSI ↓70 → consider SHORT.
4. Stop-loss: +1–2% from the high; take-profit: 3–5%.
5. Confirmation: MACD, EMA/SMA, volumes.
🎯 Tips
- Combine RSI with other indicators.
- Look for divergences: price is rising, RSI is falling.
- In strong trends, RSI can stay in zones for a long time.
🤔 Question
How do you use RSI in your trades?