Both—about "didn't I already manage to get in" but they answer different questions 😅
RSI (Relative Strength Index) answers the question: "Is the asset currently overbought or oversold?"
- Scale 0-100
- Above 70 — maybe too much hype, the market is "overheated"
- Below 30 — maybe too much panic, the asset is "scared"
In simple terms: "did the move go too far?"
MACD (Moving Average Convergence Divergence)** answers the question: "Is the strength and direction of the trend changing?"
- Shows the difference between two moving averages
- The intersection of the MACD line and the signal line is a hint at a possible shift in momentum
- The histogram shows whether the movement is accelerating or already running out of steam
In simple terms: "Is the trend still alive, or already tired?"
When I use this:
🔍 RSI — so you don’t go long when the asset is already "overbought to the skies" (hi, SNDK story 👀)
🔍 MACD — to figure out whether the trend is even worth continuing to track or whether the momentum is already fading
An important point I didn’t understand for a long time:
Both are lagging indicators—they show what has already happened, not the future. So this isn’t an "buy/sell immediately" signal, but rather a prompt: "take a closer look"
Who at the start also thought it was two versions of the same thing? 🙋♀️😂