Technical Analysis Practice 2 – RSI(Relative Strength Index)

Technical Analysis RSI

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.

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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.

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Where to find RSI

Where to find RSI in Binance

Binance is my main exchange.

Binance RSI

Go to the advanced view of exchange.
You will see RSI under the indicator menu.

Here is my referral link to Binance.

Where to find RSI in Tradingview

I use Tradingview to do the most of technical analysis.

tradingview RSI

  1. Click Indicators
  2. Type RSI to the search box
  3. Select “Relative Strength Index”

Tradingview is more advanced but has many useful tools.
I wrote a blog articles about that.
Please check it out.

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RSI range

Here is how I determine if the market is bullish, neutral or bearish.

Bullish zone 40~70+++

RSI Bullish range

Neutral zone 30~60

RSI neutral zone

Bearish zone —20~60

Bearish trend RSI

Discover the trend change in RSI

RSI helps you to detect when the trend changes.

Divergence

Divergence RSI

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.

RSI support/resistance

Support and resistance exist not only in the price chart but also in RSI chart.

RSI support resistance

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.

Conclusion

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!

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