Technical Indicators

Master essential technical indicators for crypto market analysis

60 min

Understanding RSI

The Relative Strength Index (RSI) is a momentum indicator that measures the speed and magnitude of recent price changes. Key concepts: - Scale: 0 to 100 - Overbought: Above 70 - Oversold: Below 30 - Divergence: Price moves in opposite direction of RSI Traders use RSI to identify potential reversals and market conditions. However, during strong trends, RSI can remain in overbought/oversold territory for extended periods.

Key Points

  • Measures price momentum
  • Identifies overbought/oversold
  • Shows potential divergence
  • 14 periods is standard