In cryptocurrency trading, grasping the timing of entry and exit is a core challenge faced by every trader. Although this may seem difficult, with the help of technical analysis tools and momentum indicators, especially the Relative Strength Index (RSI), this problem can be easily solved. RSI has become one of the most widely used technical indicators in traders' toolkits worldwide. It allows traders to quickly determine whether a token or crypto asset is overbought or oversold, thereby improving the accuracy of trading decisions.
Core Overview
- RSI is a beginner-friendly technical indicator used to identify whether an asset is overbought or oversold
- As a linear momentum indicator, RSI is concise and easy to use, helping traders capture trading opportunities and reflect recent price momentum
- Although RSI is a powerful tool, its reliability is lower in trending markets and it does not consider trading volume
- Advanced uses include divergence analysis, relative strength comparison, and