The RSI indicator

 



The RSI indicator helps traders assess the strength of a financial instrument's price movement and identify potential overbought or oversold conditions. You can find the RSI indicator on the vfxAlert dashboard.


  • When the RSI is above 70, the instrument is considered overbought, indicating a possible downward correction. On the other hand, an RSI below 30 indicates an oversold condition and a potential upward correction.


  • When the RSI and price movement show conflicting patterns, it could be an early sign of a trend reversal.


  • Bullish divergence occurs when the price makes lower lows, but the RSI makes higher lows, indicating potential upward momentum. Bearish divergence is reverse condition. 


  • The RSI can help confirm the strength of a trend. During a strong uptrend, the RSI tends to stay in the overbought region, while during a strong downtrend, it lingers in the oversold region.


More information about RSI in our article.

If you have any questions please write to support@vfxalert.com

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