🔸Technical indicator - What is RSI and why is it needed?
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RSI is a technical analysis indicator by which a trader can determine the strength of a trend and the possibility of its change.
RSI chart and its levels
RSI is a relative strength index that is based on historical price change data which can be positive or negative, depending on the closing value of the timeframe.
What does RSI give us and how can we use it?
Using this indicator, it is possible to easily determine the strength and point of trend change, overbought and oversold of an asset; it is possible to construct technical analysis figures on its chart and, most importantly, to detect divergence and convergence.
Overbought is determined quite easily - a value equal to or above 70% indicates this.
Likewise for oversold conditions - less than or equal to 30%.
The best entry point for a trade is below 30%, and the fixing point is above 70%.
author (it's me) - https://t.me/s_cum_invest