Average RSI (Daily + Weekly)

📈 Average RSI (Relative Strength Index) – Beginner’s Guide
What it is:
The Average RSI is a technical indicator that combines multiple RSI values—such as daily and weekly RSI—into a single, smoothed line. This helps traders get a clearer picture of a stock’s momentum over both short- and medium-term timeframes.

Why it matters:
The RSI tells you whether a stock is potentially overbought (priced too high and due for a pullback) or oversold (priced too low and due for a bounce). Traditional RSI uses a scale from 0 to 100, with key levels at 70 (overbought) and 30 (oversold).

By averaging RSI across different timeframes, you reduce noise and get a better signal for trends and reversals.

How traders use it:

• ✅ Buy zone: When the average RSI dips below 40, it could signal a good entry point.
  
• ⚠️ Neutral zone: Between 40 and 60 means the trend isn’t strong—wait for more confirmation.
  
• 🚫 Sell zone: Above 60–70 may indicate the asset is overbought or due for a pullback.
  

Helpful for:

• Spotting better entry/exit points
  
• Filtering out false signals
  
• Staying in trend-following trades longer