What is the meaning of RSI in cryptocurrency trading?

1 answers

• Dec 19, 2021 · 3 years ago
  RSI, also known as Relative Strength Index, is a widely used technical indicator in cryptocurrency trading. It provides insights into the strength and momentum of price movements. RSI is calculated using a formula that compares the average gain and average loss over a specified period of time. The resulting value ranges from 0 to 100, with readings above 70 indicating overbought conditions and readings below 30 indicating oversold conditions. Traders use RSI to identify potential trend reversals and to determine whether an asset is overbought or oversold. However, it's important to note that RSI should not be used in isolation and should be used in conjunction with other indicators and analysis tools for more accurate trading decisions.
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