Are you tired of not being able to follow trend reversals or failing to understand momentum? 🤯 RSI (Relative Strength Index) can give you the edge you need to predict market movements accurately. 🚀 Here is the BEST RSI Cheat Sheet you must MASTER now! 🔍👇
1️⃣ Zona Overbought/Oversold 🚦
Overbought:
RSI above 70. 📈
The market may be “overpriced” and due for a decline.
Advice: Combine with bearish candlestick patterns for confirmation.
Oversold:
RSI below 30. 📉
Indicates the market is “oversold” and ready to bounce back.
Pro Move: Look for bullish divergences to catch trend reversals early.
2️⃣ Divergence – Golden Signal 🏆
Bullish Divergence 🔥:
Price is making lower lows 📉, but RSI is making higher lows.
Signaling weakening downward momentum and potential reversal.
Bearish Divergence ⚠️:
Price is making higher highs 📈, but RSI is making lower highs.
Indicates buyers are losing strength—watch for a trend reversal.
3️⃣ Center Line Crossing 💡
Bullish Centerline Crossover ✅:
RSI moves above 50 → indicating the formation of an uptrend.
Best Use: Combine with a breakout above key resistance.
Bearish Centerline Crossover 🚨:
RSI falls below 50 → indicating the formation of a downtrend.
Tip: Pay attention to volume confirmation during the crossover.
4️⃣ Identify Trends 📊
Up Trend 🔼:
RSI is oscillating between 40 and 90.
Zone 40–50 = Strong Support.
Action: Follow the trend until RSI weakens near 70.
Down Trend 🔽:
RSI remains between 10 and 60.
Zone 50–60 = Resistance.
Action: Look for short opportunities when RSI fails to break above 60.
5️⃣ Failure Swing 🔥 – High Accuracy Settings
Bullish Failure Swing 🟢:
The RSI crossed 30, failed to get back below it, and broke the previous RSI high.
Result: Strong buy signal for reversal.
Bearish Failure Swing 🔴:
RSI crossed 70, failed to break it again, and broke the previous low.
Result: Strong sell signal—trend likely to reverse.
How to Use RSI Like a Pro 🚀
Combine RSI with Price Action: Use candlestick patterns, trendlines, and support/resistance zones.
Wait for Confirmation: Don't rely on RSI alone—volume and other indicators strengthen signals.
Avoid RSI Overreaction: Overbought doesn't always mean "sell"—wait for divergence or a failure swing.
Set Alerts: Use alerts at levels 70, 50, and 30 to monitor RSI zones.
Trade the Trend: In strong trends, the RSI can stay overbought/oversold longer—learn how to read momentum.
Important Things 📌
RSI = Momentum + Overbought/Oversold Signals + Divergence Strength.
Quasi divergence and failure swings to identify reversals like a pro. 🎯
Combine RSI with volume and price action for sharp entries.
🔥 Which RSI signals do you use the most? Leave a comment below! Let's trade smarter, not harder! 🚀📈
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