What is Relative Strength Index (RSI)
The Relative Strength Index or RSI is one of the most common indicators in Technical Analysis, or TA for short. RSI is a technical tool that measures the relative speed of price changes/movement. It uses averages over several days rather than a single price point. Most traders use RSI to find profitable entry and exit prices.
How to read RSI?
The default value of RSI is set to be at the 70–30 benchmark. An RSI reading of 70 indicates an asset is overbought while 30 indicates the asset is oversold.
How to use RSI in trading?
Analysts often use RSI to determine the overbought/oversold position of the underlying asset. If the RSI reading is above 70, it indicates the asset is “overbought”. Hence a call to either sell or open a short position is suggested & similarly if the RSI reading is below 30 “oversold” a long/buy position is recommended.
How to load RSI on MEXC Exchange?
Commonly used timeframes for RSI indicator is 1hour or 30min, however, it can be used on any timeframe as desired.