Relative Strength Index (RSI) Indicator

The best RSI settings are typically a 14-period timeframe with 70 as the overbought level and 30 as the oversold level. These settings can be adjusted based on specific trading strategies.
Low RSI levels, typically below 30 (red line), indicate oversold conditions—generating a potential buy signal. Conversely, high RSI levels, typically above 70 (green line), indicate overbought conditions—generating a potential sell signal.

Helps identify trend direction: RSI can help traders identify the direction of the trend. If the RSI is above 50, it indicates a bullish trend, while a reading below 50 indicates a bearish trend. By identifying the trend direction, traders can make better decisions on whether to buy or sell.