I would like to share what I learned about RSI so far.
I will skip the detail of what RSI is but you can find the basic explanation in this article.
Basically, it shows the momentum of the market.
The higher range the RSI stays, the more bullish the market is and it’s other way for bear.
I learned a lot from Philakone
Where to find RSI
Where to find RSI in Binance
Binance is my main exchange.
Go to the advanced view of exchange.
You will see RSI under the indicator menu.
Where to find RSI in Tradingview
I use Tradingview to do the most of technical analysis.
- Click Indicators
- Type RSI to the search box
- Select “Relative Strength Index”
Tradingview is more advanced but has many useful tools.
I wrote a blog articles about that.
Please check it out.
Here is how I determine if the market is bullish, neutral or bearish.
Bullish zone 40~70+++
Neutral zone 30~60
Bearish zone —20~60
Discover the trend change in RSI
RSI helps you to detect when the trend changes.
When RSI and the price action don’t match, it’s called Divergence.
As you see in the image, RSI is going down but the price is going up.
Soon after this occurs, the price is following the RSI and drops.
When I find a divergence, I usually trust RSI and either go short or long based on that.
This is what I posted recently. RSI is showing the divergence.
— CrypTofu (@cryptofu47) April 25, 2018
Support and resistance exist not only in the price chart but also in RSI chart.
As you see in the image above, RSI can have support and resistance.
This is really important.
If RSI can’t go up or down from a certain point, you can make a better judgement.
RSI is one of the useful tools to check how bullish or bearish the market is.
Also, it tells you the possible up coming market trend.
I really recommend RSI.
Let’s try it!