*RSI = Relative Strength Index. It tells you whether a coin is expensive or cheap.*
- *RSI ranges from 0 to 100* - *Above 70 (Overbought)* = Means everyone has already bought, the coin is expensive. Buying here is risky, a dump can come. ❌ - *Below 30 (Oversold)* = Means everyone has sold, the coin is cheap. A bounce can come from here. Potential buying opportunity. ✅ - *40-60* = Normal zone, safe trading.
1. Open the chart on Binance, add RSI in Indicators. 2. Don't just look at the 5min chart. Always check both *1 Hour and 4 Hour*. 3. If RSI is 75 on 1h and also 75 on 4h -> Don't buy, wait. 4. If RSI is 25 on 1h and around 35 on 4h -> You can look for an entry near support.