RSI (Relative Strength Index)
Measures price momentum by identifying overbought and oversold zones. Good for beginners looking to anticipate turns and avoid entering too late.
What does it do for you?
Keeps you from buying into exhaustion and flags likely bounces before they happen.
A practical example
In a strong rally, wait for RSI below 30 and confirm with technical support before entering.
What are its limitations?
In sideways markets it repeats signals, and in strong moves it can stay extreme for weeks.