Hello, today and in the next few days I will explain to you in a simple and understandable way what they are, what they are for and how to read the indicators on the charts!
RSI Indicator:
The RSI (relative strength index) is an indicator that measures the strength and speed of price movements in a given period. Its main objective is to show whether an asset is overbought or oversold.
How to read it?
Values ââbetween 0 and 30: The asset is considered to be oversold, which could mean a buying opportunity, as the price could rise soon.
Values ââbetween 70 and 100: Indicates that the asset is overbought, suggesting that the price could fall soon.
Values ââaround 50: Reflect a neutral or balanced market.
What is it for?
The RSI helps traders identify possible price reversal points, that is, when an asset has risen or fallen too quickly and could change direction.
