💡 TradFi Explained | RSI Overbought/Oversold in Practice

RSI measures the recent pace of price up/down moves, ranging from 0–100

RSI > 80 Extremely overbought—very high risk of chasing longs
RSI 70–80 Overbought—use caution
RSI 40–70 Healthy zone—can enter
RSI < 30 Oversold—watch for a rebound

Note: Overbought does not necessarily mean an immediate top. In a strong trend, RSI can remain overbought for a long time.
Recommendation: If entering in the overbought zone, you must set a tight stop-loss.

⚠️ This content is for learning reference only and does not constitute investment advice.
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