📊 HOW TO GET YOUR ENTRY RIGHT: THE SECRETS OF RSI AND VOLUME
Even a perfect trend line or support level can be “broken through.” To filter out false moves, traders use indicators as guides.
Let’s take a look at two of the most powerful tools for confirming a signal.
📉 1. RSI (Relative Strength Index)
- What it is: An oscillator that measures the speed and change of price on a scale from 0 to 100.
- Overbought / oversold zones:
Above 70: The asset is overbought 🟢, with a high probability of a downward correction.
Below 30: The asset is oversold 🔴, and the price may soon reverse upward.
📊 2. Trading volume (Volume)
- What it is: The most honest indicator on the chart, showing how much money has actually flowed into an asset.
- The golden rule: Any breakout of a level or trend reversal must be accompanied by an increase in volume. If the price is soaring while volume is falling, it’s manipulation or a weak move.
💡 Tip:
Never make a decision based on the RSI alone. Use it together with a support or resistance level.
👇 Which indicators do you use in your daily trading? Let us know in the comments!
#Binance #технічнийаналіз #RSI #трейдинг #крипта
Even a perfect trend line or support level can be “broken through.” To filter out false moves, traders use indicators as guides.
Let’s take a look at two of the most powerful tools for confirming a signal.
📉 1. RSI (Relative Strength Index)
- What it is: An oscillator that measures the speed and change of price on a scale from 0 to 100.
- Overbought / oversold zones:
Above 70: The asset is overbought 🟢, with a high probability of a downward correction.
Below 30: The asset is oversold 🔴, and the price may soon reverse upward.
📊 2. Trading volume (Volume)
- What it is: The most honest indicator on the chart, showing how much money has actually flowed into an asset.
- The golden rule: Any breakout of a level or trend reversal must be accompanied by an increase in volume. If the price is soaring while volume is falling, it’s manipulation or a weak move.
💡 Tip:
Never make a decision based on the RSI alone. Use it together with a support or resistance level.
👇 Which indicators do you use in your daily trading? Let us know in the comments!
#Binance #технічнийаналіз #RSI #трейдинг #крипта