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Crypto Trading 101: How to Use RSI

parting positive mindfulness
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theutopianlife.com
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  (1) assess the momentum of price changes; (2) foresee market reversals; (3) confirm the trend of the market; (4) identify entry and exit positions.

RSI is a two-part formula: first, it averages the gains or losses of a coin over a set of days (standard is 14). The second part of the RSI formula scales the data to an oscillating chart from 0-100.

Generally, when the RSI indicates a number over 70, a coin is considered “overbought;” conversely, when the RSI is under 30, it is considered “oversold.”  Each of these points signal that the market is primed for a trend reversal.How to Interpret RSI“Overbought” and “Oversold”“Overbought” signals that a coin is trading above market expectations or true value.  “Oversold” signals that a coin is.

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