Mastering Market Moves: Quick Guide to RSI & MACD Analysis
**RSI (Relative Strength Index) Analysis:**
- **RSI Values:**
- **Above 70:** Overbought, potential for price pullback.
- **Below 30:** Oversold, potential for price bounce.
- **Around 50:** Neutral, balanced market.
- **Divergences:**
- **Bullish Divergence:** Price makes new lows, RSI makes higher lows—signals possible upward reversal.
- **Bearish Divergence:** Price makes new highs, RSI makes lower highs—signals possible downward reversal.
**MACD (Moving Average Convergence Divergence) Analysis:**
- **Crossovers:**
- **Bullish Crossover:** MACD line crosses above signal line—indicates increasing upward momentum.
- **Bearish Crossover:** MACD line crosses below signal line—indicates increasing downward momentum.
- **Histogram:**
- **Positive Histogram:** Bullish momentum.
- **Negative Histogram:** Bearish momentum.
- **Divergences:**
- **Bullish Divergence:** Price drops, MACD rises—signals possible bullish reversal.
- **Bearish Divergence:** Price rises, MACD falls—signals possible bearish reversal.
**Summary:**
- **RSI** identifies overbought/oversold conditions and potential reversals.
- **MACD** confirms trends and momentum changes. Use both for a clearer market view!