Step 1
What is RSI?
RSI (Relative Strength Index) is a momentum indicator with a 0-100 scale. Generally, below 30 is considered oversold and above 70 overbought.
- RSI is not an automatic buy signal
- RSI helps read momentum strength
Technical Analysis
RSI docs for beginners: what RSI is, when to use it, and how to combine it with risk management.
Step 1
RSI (Relative Strength Index) is a momentum indicator with a 0-100 scale. Generally, below 30 is considered oversold and above 70 overbought.
Step 2
Focus on trend context. In strong uptrends, RSI often stays above 40. In downtrends, RSI often fails to break 60. Use support/resistance for confirmation.
Step 3
Simple workflow: screen ticker -> check RSI -> define entry area -> calculate risk per position -> review trade outcomes.