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I've noticed that many beginners ask about the RSI indicator and where to view it on charts. In fact, it's one of the simplest yet most effective tools for analysis. Let me explain how I use it.
RSI (Relative Strength Index) is essentially a barometer that shows when an asset becomes overbought or oversold. If the RSI indicator rises above 70, it signals overbought conditions — the price may reverse downward. If it falls below 30, it indicates oversold conditions — usually followed by a price increase.
To get started, simply open the chart of the asset you're interested in, find the indicators menu, and select RSI. The standard period of 14 is a good choice for beginners. After that, a separate line will appear below the main chart, oscillating between 0 and 100. That’s your RSI indicator.
In trading, I use it quite simply: when RSI drops to around 30, it can be a buy signal. When it rises toward 70, it’s time to consider selling. Of course, you shouldn’t rely solely on this indicator — combine it with other signals, like Bollinger Bands, to get more reliable confirmation.
In practice, it looks like this: I remember BTC dropped, RSI showed 28, and indeed, after that, the price started to rise. It was similar with ETH — RSI shot up to 75, then a decline began. After a few experiences, you start to feel these moments.
A few tips: first, don’t rely only on RSI; it’s just one of the tools. Second, definitely practice on a demo account first so you don’t risk real money. If you trade frequently and catch short-term moves, try setting the period to 7 instead of 14 — you’ll get more signals.
The RSI indicator is truly a simple way to improve your trading decisions. Try adding it to your chart right now and see how it works in your trading.