DO YOU KNOW...??
#RSI is not a BUY or SELL button. It is a momentum meter.
The Relative Strength Index (RSI) helps traders understand whether price momentum is becoming overextended.
🔴 RSI > 70 → Overbought
🟢 RSI < 30 → Oversold
🟡 RSI 30–70 → Normal momentum
But here is the important part:
An RSI below 30 does NOT mean “BUY NOW.”
Price can remain oversold while continuing to fall.
Instead, combine RSI with:
Support/Resistance — Is price at an important level?
Volume — Are buyers actually returning?
MACD — Is momentum reversing?
Price Action — Is the market forming higher lows?
A powerful setup:
Oversold RSI + strong support + bullish divergence + rising volume = potential reversal setup.
That's when RSI becomes much more powerful.
Don't trade the RSI. Trade the story behind the RSI.
#RSI #CryptoTrading #TechnicalAnalysis #BinanceSquare #TradingTips #Crypto
