What is Rsi and how to use it ?

# **What is RSI and How to Use It?**

The **Relative Strength Index (RSI)** is a momentum indicator that measures **overbought and oversold conditions**, helping traders identify trend strength and potential reversals.

## **1️⃣ RSI Levels & Interpretation**
✅ **Above 70:** Overbought zone → Possible **trend reversal or correction**.
✅ **Below 30:** Oversold zone → Possible **trend bounce or reversal**.
✅ **50 Level:** Midpoint indicating **trend strength** (above 50 = bullish, below 50 = bearish).

## **2️⃣ How to Use RSI in Trading**
✅ **Overbought & Oversold Trading:** Look for reversals near **70 or 30**.
✅ **Divergence Trading:**
🔹 **Bullish Divergence:** Price makes lower lows, RSI makes higher lows → **Buy signal**.
🔹 **Bearish Divergence:** Price makes higher highs, RSI makes lower highs → **Sell signal**.
✅ **RSI Trend Confirmation:** Use with **support, resistance, and moving averages**.

### **Conclusion**
RSI helps traders **spot trend reversals, confirm momentum, and optimize trade entries**, making it a valuable tool for market analysis. 🚀