RSI for Beginners: The Easiest Way to Use It on Binance
What is RSI?
The Relative Strength Index (RSI) is an indicator that tells you if an asset is very expensive (overbought) or very cheap (oversold).
Above 70: High price (could go down soon).
Below 30: Low price (could go up soon).
How to set it up on Binance
1. Log in to Binance.
2. Open the chart of the asset you want to analyze.
3. Click on "Indicators" and look for RSI.
4. Select it and leave the default value (14 periods).
Done! You will now see the RSI as a line below the chart.
How to use RSI in your trading
1. Buy: If the RSI is close to 30, the price could go up soon.
2. Sell: If the RSI is close to 70, the price could go down soon.
Tip: Combine RSI with other indicators, such as Bollinger Bands, to confirm your decisions.
Practical example
BTC/USDT: RSI drops to 28 → Goes oversold → Price goes up afterwards.
ETH/USDT: RSI rises to 75 → Goes overbought → Price goes down afterwards.
With a little practice, you will see how to use these signals in your trading.
Quick tips
1. Don't rely on RSI alone, use it in conjunction with other data.
2. Practice on a demo account first.
3. If you trade fast, try changing RSI to 7 periods for more signals.
RSI is an easy and effective tool. Try setting it up today and improve your trading decisions!
