What is the meaning of RSI in the context of cryptocurrency trading?

1 answers

• Jan 14, 2022 · 3 years ago
  RSI, also known as Relative Strength Index, is a widely used technical indicator in cryptocurrency trading. It helps traders assess the strength and momentum of a cryptocurrency's price movements and identify potential buying or selling opportunities. The RSI is calculated based on the average gain and loss of an asset over a specified period of time, typically 14 days. A reading above 70 indicates that a cryptocurrency is overbought and may be due for a price correction, while a reading below 30 indicates that a cryptocurrency is oversold and may be due for a price rebound. However, it's important to note that the RSI is just one tool among many used in technical analysis, and traders should consider other factors and indicators before making trading decisions.
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