Hey! Because of my job I hadn't been able to publish... Binance still doesn't give me enough to live on hehe
Well starting with the publications on questions for beginners... We start with the question raised by one of you about how to buy and sell based on the RSI. Be careful, this indicator is not always sufficient but it is useful.
1. What is RSI?
As I have already mentioned in previous posts, the RSI stands for (Relative Strength Index). This indicator measures the momentum of changes in the price of an asset (in this case the respective cryptocurrency) to evaluate whether the price of said asset is oversold or overbought. Its value is between 0 and 100. The *oversold* Zone is between 0 and 30...which tells you that the price will eventually rise, since the *sellers* have already run out of strength to continue pushing the price down.. THERE IS TIME TO BUY.
Now, the *Overbought* Zone is between 70 and 100...Which indicates that if the RSI is in that range, the price will eventually go down... Well, the *buyers* ran out of strength to continue pushing the price up. price...THEN IS TIME TO SELL.
2. How do I use RSI to buy or sell on Spot?
Well, let's look at an example.
On the chart, I bought Pepe when its RSI was in the area close to 30. The chances of the price continuing to rise were high since a new uptrend was starting (we talked about the MACD later)... Well, being with RSI at 80 I should have sold the asset although I didn't. However, I hope you get the idea.
3. Where do I see the RSI values on Binance? From your cell phone you will see it like this...
At the bottom you activate it and at the top, the yellow line will show you the values that oscillate or move between 0 and 100...
On the computer, you still look for the indicators, choose RSI, activate it and it shows you those same values.
4. Is it that simple?
Over time you will realize, beginner friend, that additional information will always be necessary...Well, I can have an RSI at 80 in PEPE and just at that moment Elon Musk says that he will use Pepe for his projects, so there it is very likely that the price continue rising until you reach almost 100....The same thing happens in the opposite direction...The news 📻 🗞️ is part of the *Fundamental Analysis*, the RSI is an indicator of *Technical Analysis*. I leave it to you to investigate the difference between these two types of analysis.
5. Can I use the RSI for futures?
Of course! Just be careful with leverage and control your emotions...that's actually the hardest part. Also complement this with another indicator like the MACD... we'll deal with it later ;)
I hope I have been clear and that this content is useful to you.
Good vibes! Tips are voluntary hehe 🫶
