Understanding "RSI" (Simple version)
Ever feel like you missed the boat because a coin's price was soaring, or jumped in too early when it was falling, only to see it drop further? It’s confusing to know if a price move still has 'gas' or is running on empty! ⛽
You know that feeling when a crypto's price keeps soaring, making you wonder if it’s too late to jump in?
Or when it’s been falling, and you're scared to even touch it? That’s where RSI (Relative Strength Index) comes in!
Imagine RSI like a car’s speedometer for price momentum: it measures how fast and intensely a price has been moving, giving us a score usually between 0 and 100.
But, we often make the mistake of just seeing a low RSI and thinking “instant buy!” or a high RSI and thinking “time to sell!” 🙅♀️
Therefore, RSI isn’t a direct buy or sell signal, but a market "energy meter."
When RSI dips below 30, it suggests a crypto might be "oversold," meaning it's dropped significantly and could be due for a pause, like a deep clearance sale!
If it climbs above 70, it might be "overbought," hinting the price could be tired after a big run.
The big lesson: RSI helps us feel the market’s pulse and understand if a trend is losing steam or getting overheated, rather than just chasing the price itself.
It’s like checking the ingredients, not just the packaging! ✨
#RSI #TradingTips #CryptoEducation #MarketAnalysis
- Disclaimer: Sharing knowledge and insights as part of learning and growing together. For educational purposes only, not financial advice.