What is Relative Strength Index (RSI)?

RSI is a momentum indicator that is looking at how much and how fast a price of a coin has moved over a period of time – so it’s measuring the speed and the magnitude of the price change over a specified period of time.

When using RSI on Coinigy, we have 2 additional lines that we are considering: the 30 and the 70. So if the RSI stays within the band defined between the 30 and 70, that means that this is just regular market activity (buying and selling). If it goes above 70 or below 30, that means that the coin is overbought or oversold, respectively. Hence, a good time to get in is when the RSI is below 30 and a good time to sell is when the RSI is above 70.

A coin’s RSI can stay above 70 for example for a long period of time, which would mean that more and more people are interested in buying the coin. An important parameter to help you decide when would be a good time to sell in this case is theĀ volume. Using the volume, you can assess whether people are losing interest in the coin or traders are starting to take their profits, which means that this would be a good time for you to get out too.

How to use Relative Strength Index (RSI)

TECHNICAL ANALYSIS: How to use Relative Strength Index (RSI) to analyse change in price on Coinigy.http://www.drcrypto.co.uk/trading/ta/ta-5-relative-strength-index-rsi-to-analyse-change-in-price/ The first 2 points I am pointing at have an RSI of over 70, which means that the coin is being overbought at those 2 points and the coin was seeing a bullish movement. The third point I am pointing at has an RSI of below 30, which means that the coin is being oversold and it was seeing a bearish movement.

Posted by Doctor Crypto on Thursday, 30 November 2017

The first 2 points I am pointing at have an RSI of over 70, which means that the coin is being overbought at those 2 points and the coin was seeing a bullish movement. The third point I am pointing at has an RSI of below 30, which means that the coin is being oversold and it was seeing a bearish movement.

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