Ever bought a coin just because it felt "too cheap," only to watch it sink even lower? ⚡
That is where momentum comes in. The Relative Strength Index (RSI) measures market momentum on a scale from 0 to 100.
Here is how the scale works:
• Above 70: Typically signals strong or potentially overextended momentum.
• Around 50: Represents balanced momentum.
• Below 30: Typically signals weak or potentially oversold momentum. 📉
A major mistake traders make is relying on single readings. An indicator isn't a standalone trigger. To get proper confirmation, RSI should always be combined with price structure, volume, and the broader trend — never used alone. 🛡️
How often do you check price structure and volume before trusting an indicator signal?
#CryptoTrading #TechnicalAnalysis #RSI #TradingTips
That is where momentum comes in. The Relative Strength Index (RSI) measures market momentum on a scale from 0 to 100.
Here is how the scale works:
• Above 70: Typically signals strong or potentially overextended momentum.
• Around 50: Represents balanced momentum.
• Below 30: Typically signals weak or potentially oversold momentum. 📉
A major mistake traders make is relying on single readings. An indicator isn't a standalone trigger. To get proper confirmation, RSI should always be combined with price structure, volume, and the broader trend — never used alone. 🛡️
How often do you check price structure and volume before trusting an indicator signal?
#CryptoTrading #TechnicalAnalysis #RSI #TradingTips
