RSI, or the Relative Strength Index indicator, is one of the most fundamental tools in technical analysis. Its essence lies in its ability to predict future activity based on a collection of data about previous trends. The indicator helps forecast market structure and potential price fluctuations in the future over specific time intervals.

By nature, the indicator is an oscillator, which, simply put, is a metric that oscillates. The oscillator tracks price movements and the speed of these movements. In simple terms, RSI indicates whether the price of a selected cryptocurrency is in a strong or weak state. This indication is based on closing prices over a specific period, positively influencing the efficiency of analysis.

Main Metrics and Criteria for Using RSI:

Additionally, the oscillator allows understanding the trend reversal in price movement. If the price rises while RSI decreases — bearish divergence. If the price declines while the oscillator increases — bullish divergence.

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