💪 RSI – Relative Strength Index
💪 RSI – Relative Strength Index
RSI (Relative Strength Index) is a momentum indicator that tells you when a coin might be overbought or oversold.
It’s simple, powerful, and loved by both beginners and pros.
🧠 Simple Definition
RSI shows how fast and how strong price moves are. It helps spot reversals, cooldowns, or breakout zones.
RSI value ranges from 0 to 100:
Above 70 → Overbought (may be time to sell)
Below 30 → Oversold (may be time to buy)
📊 RSI Zones
70–100
Overbought
Watch for a pullback
50
Neutral / Mid-point
No clear trend
0–30
Oversold
Watch for a bounce
⚠️ Overbought doesn’t always mean “drop now” — it just means momentum is high.
🔍 Example Use Cases
Divergence: If price makes a higher high but RSI makes a lower high → it’s a bearish divergence. (Can signal a possible reversal.)
Trend confirmation: In a strong uptrend, RSI may stay above 50 for a long time.
Entry signals: RSI dipping under 30, then rising back above it = early buy signal.
🤖 How Mandalyze AI Uses RSI
Mandalyze AI reads RSI in real time and gives natural-language alerts like:
"BTC is currently overbought (RSI: 78). Watch for a potential short-term pullback."
It also combines RSI with other indicators (like EMA crossovers) for stronger signals.
🧪 In Summary
RSI is a great tool for spotting momentum shifts and early warning signs. But like any indicator — don’t use it alone.
⚡ Combine RSI with support/resistance or moving averages for best results.
🧭 Next Lesson: MACD – Moving Average Convergence Divergence
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