How does RSI indicator help in identifying profitable day trading opportunities in the world of cryptocurrencies?

1 answers

• Krabbe HayMay 17, 2021 · 5 years ago
  The RSI indicator is a widely used tool in the world of cryptocurrencies, and for good reason. It helps traders identify potential profitable day trading opportunities by indicating overbought and oversold conditions. When the RSI indicator is above 70, it suggests that a cryptocurrency may be overbought and due for a price correction. On the other hand, when the RSI indicator is below 30, it indicates that a cryptocurrency may be oversold and due for a price bounce. Traders often use these levels as entry or exit points for their trades. However, it's important to note that the RSI indicator is not infallible and should be used in conjunction with other technical analysis tools and market research to increase the probability of success.
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