Relative Strength Index (RSI): A Trader's Guide
The RSI is one of the most popular indicators in crypto. It measures the speed and change of price movements to identify overbought or oversold conditions.
Reading the RSI
The RSI ranges from 0 to 100.
- > 70: Overbought. The asset might be due for a correction (price drop).
- < 30: Oversold. The asset might be undervalued and due for a bounce.
Divergence
Advanced traders look for Divergence:
- Bullish: Price makes a lower low, but RSI makes a higher low.
- Bearish: Price makes a higher high, but RSI makes a lower high.
Calculate RSI values manually for custom timeframes or datasets using the RSI Calculator.