# 💪 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.

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### 🧠 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)

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### 📊 RSI Zones

| RSI Value | Market Condition    | Possible Action      |
| --------- | ------------------- | -------------------- |
| 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.

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### 🔍 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.

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### 🤖 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**.

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### 🧪 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.

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> 🧭 Next Lesson: MACD – Moving Average Convergence Divergence
