what is RSI and how to use it ?

# **What is RSI and How to Use It?**

The **Relative Strength Index (RSI)** is a momentum indicator that measures the **speed and change of price movements**, helping traders identify **overbought and oversold conditions**.

## **1️⃣ RSI Levels & Interpretation**
✅ **Above 70:** Overbought → Possible **reversal or correction**.
✅ **Below 30:** Oversold → Possible **bounce or trend reversal**.
✅ **50 Level:** Midpoint indicating trend strength (above 50 = bullish, below 50 = bearish).

## **2️⃣ How to Use RSI in Trading**
✅ **Overbought & Oversold Trading:** Look for reversals near **70 or 30**.
✅ **Divergence Trading:**
🔹 **Bullish Divergence:** Price ↓, RSI ↑ → **Buy signal**.
🔹 **Bearish Divergence:** Price ↑, RSI ↓ → **Sell signal**.
✅ **RSI Trend Confirmation:** Use with **support-resistance and moving averages** for accuracy.

### **Conclusion**
RSI helps traders **spot trend reversals, confirm momentum, and refine trade entries**, making it a valuable tool for market analysis. 🚀