🧠RSI

The indicator was invented back in 1974, despite this, due to its simplicity, it remains relevant to this day.

➡️ Shows the strength and speed of price movement. It helps determine when an asset is in overbought or oversold territory.

📊 Oversold or overbought occurs when the price quickly decreased/increased; accordingly, traders may have the idea to buy/sell an asset, since the price does not correspond

Usage example

The RSI has an upper and lower limit (70 and 30 respectively). Crossing the upper limit (RSI > 70) can be considered a sell signal, since the asset is most likely overbought and there is a risk of a correction or even a trend reversal.

Accordingly, a signal to buy will be the crossing of the lower border (RSI <span Please note that this indicator by itself is unlikely to lead you to stable trading. There are a lot of manipulators and anomalous movements on the market, so it should always be used together with other analysis tools. A tandem of technical analysis of the chart, understanding of the market trend and fundamentals + RSI can already give you tangible results and growth.