📚 How to Use RSI + Volume to Avoid Bad Trades (Beginner Friendly) 💡
Getting into crypto trading? Two tools that can really help you make smarter decisions are RSI and Volume. When used together, they can tell you if a move is real or just hype. Here’s how to keep it simple:
1. 📏 Start with RSI (Relative Strength Index) – RSI is a number between 0 and 100. If it’s above 70, the coin is probably overbought (price went up too fast). If it’s below 30, it’s oversold (price dropped too fast). This gives you an idea if a reversal might be coming.
2. 🔍 Check the Volume – Volume shows how many people are trading the coin. When price moves with high volume, the move is stronger and more likely to continue. But if price is pumping or dumping on low volume, don’t trust it—it could be a fakeout.
3. 🧠 Combine Both Signals – If RSI is high and volume is dropping, that might be a warning. If RSI is low and volume is rising, the price could bounce soon. Don’t rely on just one tool—use them together for better results.
4. 🕯️ Wait for Confirmation – Never rush into a trade just because RSI looks good. Wait for a strong candle close or a clear support/resistance bounce. Patience keeps your money safe.
5. 🧪 Test Before You Risk – If you're just starting out, try this strategy on a demo account or use small amounts first. Learn how it works before you go big.
By using RSI and Volume together, you’ll be able to spot better entries and avoid getting trapped in bad trades. Keep it simple, don’t chase the market, and let the signals guide you 💪.
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