💥 RSI (Relative Strength Index)** is a popular technical indicator used by traders and investors to determine whether the market is **Overbought** or **Oversold**. It was developed by **Welles Wilder Jr.** in 1978.
💥 Main uses of RSI: 1. Overbought and Oversold signals: RSI = more than 70 (price has risen too much, there is a possibility of a decrease).
RSI = less than 30 (price has fallen too much, there is a possibility of an increase).
💥 Divergence: Bearish divergence : If price makes a new high but RSI fails to do so, a downtrend may occur.
Bullish divergence : If price makes a new low but RSI fails to do so, an uptrend may occur.
When a coin is published news:- When the market manipulator is pumping with those coin entries, they need to sell, the market bull traps with a good news.
This is because retail traders don't have money to buy or sell, but they have a lot of liquidity, large traders have a lot of money but they don't have liquidity. They require huge amounts of liquidity. Because there is more liquidity in the market, many times the price does not increase after buying more, and the price does not decrease after selling more.
Because they lie with people, they are supposed to crash the market after overselling, but they don't. Because many people buy fomo. The snake also died. The stick did not break.
Remember: every market manipulation happens. You have to trade with a lot of logic. Take entry before news.