Why People Use RSI Wrongly 🤔

you use RSI like This 👇

Most traders use the RSI indicator to see if a market is overbought or oversold. If the price is
above the 70 line, it’s overbought. If the price is below the 30 line it’s oversold. I’m sure almost All of you have traded like this, and you have quickly figured out this doesn’t work all the time. Instead of using the RSI indicator this way, you should be using it like this. RSI will make what’s called divergences, which is when price is moving one
way and the indicator is moving another
We can use these divergences to pinpoint when the market will reverse. So if the market is moving downwards and the RSl is making higher highs, this is a bullish divergence, which can signal the market is about to reverse upwards, which it does.

Disclaimer:

None of this is meant to be construed as investment advice, it’s for entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.

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