$NOT The **Relative Strength Index (RSI)** is a popular indicator for **cryptocurrency trading**. It measures **momentum**, **cryptocurrency price** (based on closing price), and **speed of price movement**. Here are some tips on how to use RSI:
1. **Identify price trends**:
- When the RSI is **below 30%**, the market is **oversold**.
- When the RSI is **above 70%**, the market is **overbought**.
2. **Calculate RSI**:
- RSI is calculated based on the last **14 candles** (periods).
- The formula is: $$ RSI = 100 \left[1 - \frac{1}{1 + RS}\right] $$
- Where:
- RS = **Average Gain / Average Loss**
- Average Earning = Sum of earnings per period
- Average Loss = Sum of losses per period
3. **Use RSI to time the market**:
- When RSI is **overbought**, consider waiting for a **bearish reversal**.
- When the RSI is **oversold**, consider waiting for a **bullish reversal**. đ #Notcoinđđ„
