The word RSI means Relative Strength Index which is one of the most important and widely used tools for trading. It is known that everyone understands the concept of obstruction levels and patterns in the world of cryptocurrency. But if there is any chance of getting knowledge about one of the most widely used weapons in the arsenal of trading, it is RSI in the world of cryptocurrency.
RSI: Short History
RSI was created by Wellers Wilder who was a technical analyst 40 years overtaking the Candlestick Pattern which is pioneer since the 18th century. RSI works on a complex formula which helps to find out whether the selected asset is oversold or overbought in the cryptocurrency market. It is not mandatory to know more about the formula or how it works in order to get benefited from RSI.
Implementation of RSI in cryptocurrency trading platforms
It is basically an indicator which helps its user to identify whether the price of the selected asset is too much from its true value or not. This will assist the users to take advantage by doing a trade before the assets correct its value in the market. With RSI, the beginners get a great advantage in trade entry as it acts like a vital tool in the world of cryptocurrency marketing.
RSI is a technical indicator used for evaluating the future movement of cryptocurrency pricing. It evaluates the performance of cryptocurrencies in the market for the range of 14 days to 26 days. RSI is integrated in many cryptocurrency trading and exchange platforms such as Paybito, a HashCash cryptocurrency trading and exchange platform. Paybito trades in various cryptocurrencies such as Bitcoin, Bitcoin Cash, Litecoin, and HCX, a HashCash digital asset.
How can RSI be used by beginners?
It helps to predict when the selected asset will cool off. The more RSI value reaches higher than 70.00, more will the over purchasing price and deeper will the pullback price. Whereas, when the value is below 30.00, it indicates the selected asset is underpriced or oversold. The strength index shows a ‘bull’ trend on HCX which is available on Paybito exchange, both web and android mobile app. According to the recent events the prices of HCX has seen an upper trend.
Some Key Tips for Beginners of RSI:
The easiest and effective way to earn a profit in a short time frame is by using RSI during trade entries when there is an “oversold bounce” which occurs due to the severe drop of price of any asset in the upside tends.
A user should wait for the RSI to reach 100 from 0 as this incident does not happen ever. When the RSI value is less than 15 or more than 85 that means it is an indication the oversold or purchasing conditions of the selected asset.
There is a chance of divergence that occurs due to the movement of the RSI on the direction which is on the opposite direction of the price. The phenomenon of “bullish divergence” comes to play when the RSI shows higher low but the price shows a lower low graph.