Technical Indicators

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Understand each indicator — what it does and how to read its signals.

RSI

RSI

MVP

Relative Strength Index

Measures momentum strength — overbought or oversold?

📖 What is it?

RSI is an indicator that measures how fast and strong a price is moving, by comparing up days vs down days over the last 14 candles. The value always stays between 0 and 100.

⚙️ How is it calculated?

Calculated from the ratio of average gains divided by average losses over 14 periods, then converted to a 0–100 scale. RSI = 100 - (100 / (1 + RS)) where RS = avg gain / avg loss.

📊 Reading the Signals

RSI > 70

Overbought — price may be too high, potential pullback ahead.

RSI 55–70

Bullish — positive momentum, price has upward strength.

RSI 45–55

Neutral — no clear direction yet, wait for confirmation.

RSI 30–45

Bearish — negative momentum, price has downward pressure.

RSI < 30

Oversold — price may be too low, potential bounce incoming.

💡 Pro Tips

1

Combine RSI with EMA to confirm signals — RSI > 55 + price above EMA20 = stronger bullish case.

2

RSI divergence is powerful — price makes higher high but RSI makes lower high = potential reversal.

3

In strong uptrends, RSI often stays between 40–90. In downtrends, between 10–60.

4

Check RSI across multiple timeframes — if 1h, 4h, and 1d all agree, the signal is much stronger.

Example Signal

67
Bullish
OversoldOverbought
050100

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For educational purposes only. Not financial advice.