Traders View Non-AMP

Read The Guide on Relative Strength Index (RSI)

Published by
Qadir AK

Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a well-versed momentum based oscillator which is used to measure the speed (velocity) as well as the change (magnitude) of directional price movements. Essentially RSI is a viable indicator of price movements.

RSI operates between a scale of 0 and 100 and the closer RSI is to 0, the weaker the momentum is for price movements and if the RSI is closer to 100 indicates a period of stronger momentum.

What To Look For?

Overbought and Oversold Markets

Any number above 70 considers as overbought and any number below 30 considers as oversold. An RSI between 30 and 70 is considerably neutral and an RSI around 50 signifies “no trend.”

Divergence

  • Bullish RSI Divergence – When price makes a new low but RSI makes a higher low.
  • Bearish RSI Divergence – When price makes a new high but RSI makes a lower high.

Most traders believe that Bearish Divergence creates a selling opportunity while Bullish Divergence creates a buying opportunity.

Reversals

Positive Reversal occurs when price makes a higher low while RSI makes a lower low and price proceeds to rise. Negative Reversal occurs when price makes a lower high while RSI makes a higher high and the price proceeds to fall.

You can subscribe to our newsletter for more latest updates

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

Top 5 Altcoins That Could Turn $2,000 into Millions by 2026

The potential growth opportunities in cryptocurrency particularly those that can disrupt the crypto market due…

August 23, 2025

Top Reasons XRP Could Hit $10 Sooner Than Expected

XRP appears ready for a strong upward move. Recent developments, like the coordinated XRP ETF…

August 23, 2025

ETC Price Breaks Out of Downtrend as Momentum Builds Toward $28

In the daily time frame, the ETC price has added around 14% today as the…

August 23, 2025

Coinpedia Digest: This Week’s Crypto News Highlights | 23rd August, 2025

It’s been another big week in crypto, with central banks, regulators, and markets all making…

August 23, 2025

Top Altcoins To Buy Now as Bitcoin Rotation Sparks Altseason

The cryptocurrency market is showing signs of rotation as Bitcoin cools after recent highs, with…

August 23, 2025

Japan Eyes 20% Crypto Tax, Bitcoin ETF, and Stablecoins by 2026: Full Details

Japan is pushing for sweeping financial reforms as part of its goal to become an…

August 23, 2025