RSI: Simple Explanation For Beginners

The Relative Strength Index is a momentum indicator that is used to gauge whether or not the market is overbought (bearish) or oversold (bullish).

The RSI oscillates between 0 and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30, but these levels can be adjusted if necessary to better fit the token. For example, you may want to adjust the overbought level to 80 if a token is reaching 70 again and again.

IMPORTANT NOTE: in a bull market, the RSI typically remains in the 40 - 90 range with the 40 - 50 zone acting as support while in a bear one, the range is 10 - 60 and with the zone of 50 - 60 acting as resistance.

This is not financial advice, but at least now you know when to buy and sell huh?

Stay informed, we will be back with more technical indicator explanations to build you a trading toolkit!

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