What is the meaning of the relative strength index in the context of cryptocurrency trading?

1 answers

• Jan 13, 2022 · 3 years ago
  The relative strength index (RSI) is a widely used technical indicator in cryptocurrency trading. It helps traders identify potential trend reversals and overbought or oversold conditions in the market. The RSI is calculated using the average gain and loss of an asset over a specified period of time. A reading above 70 suggests that the cryptocurrency is overbought and may be due for a price correction, while a reading below 30 indicates that the cryptocurrency is oversold and may be due for a price rebound. Traders often use the RSI to confirm signals from other indicators and make more informed trading decisions. However, it's important to remember that the RSI is just one tool among many and should not be relied upon solely for making trading decisions.
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