Understanding RSI: The Ultimate Tool for Crypto Market Timing

RSI is an oscillator that reflects the relative strength, between the uptrend and the downtrend

RSI indicator around level 30: reflects oversold levels

RSI indicator around level 70: reflects overbought levels

The RSI around the 50 level: it means that the market lacks a trend

To draw an uptrend line on the indicator, you need to connect two or three or more peaks of the RSI indicator as HH points appear.

On the other hand, a descending line is drawn by connecting three or more peaks as the points descend.

When the indicator (RSI) shows us a contrary direction of the price that can mean two things: -The price is running out, so there could be a corrective process in either direction. -The end of the trend is near

Bullish divergence

This is when the price forms a series of LH and the indicator is forming bullish horizontal points.

Bearish Divergence

The price forms a series of bullish highs and the indicator makes a bearish horizontal high.

LINKS

Check here the post about all the basic trading indicators

Post Sources

Thanks to CryptoSoulz for all the information