RSI is like the mood ring of the market. It tells us if the market is too excited or feeling down in the dumps.
(RSI) Relative Strength Index
If RSI is above 70, the market is overbought - (too many people buying).
If RSI is below 30, the market is oversold (everyone’s selling like crazy).
Think, RSI is your friend who always says,
Dude, calm down. You’re over shopping for your girlfriend. 🫢
💡 How Do We Use RSI?
RSI above 70? Market might be tired and about to fall.
RSI below 30? Market might be so sad it’s about to bounce back.
Example
Imagine RSI as a person at a buffet, When they’re at 70, they’re stuffed. They can’t eat another bite (market might drop soon).
When they’re at 30, they’re starving – so they’re about to eat everything in sight (market might rise).
🔥 Question
Q: Is RSI always right?
A: No. Like your friend’s dating advice, RSI is sometimes wrong. Use it as a clue, not a magic spell.
Q: Should I sell as soon as RSI hits 70?
A: No! Wait for price action confirmation – don’t panic-sell just because RSI yawned.
Q: Can RSI stay overbought/oversold for long?
A: Yes! Just like some people keep partying even when they should go home.
🎯 Personal Opinion
✅ RSI above 70: Market may fall soon, be careful.
✅ RSI below 30: Market might jump, watch for reversal.
✅ Always use RSI with other indicators.
Keep it simple, watch the market’s mood, and always remember-
You’re smarter than RSI – but you gotta respect the mood swings!
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