After your wonderful interaction on the post $PEPE I will share with you today one of my most important tools that I use to avoid random entries and capital loss.
Simply put, if you want to know whether the currency is cheap to buy or expensive to sell, monitor the RSI line on the chart:
1️⃣ The 30 zone is the oversold area 🟢
When the index falls below the 30 line, it means that everyone is selling out of fear and panic. Here, the disciplined trader looks for a buying opportunity because the price is often preparing to bounce back up.
2️⃣ Area 70 overbought 🔴
When the indicator rises above 70, that's where the disaster happens and emotional rush begins. Everyone buys out of fear of missing out, but caution is necessary as the currency has become very expensive and a drop is inevitable.
💯 Golden advice:
Never buy just because the price is rising quickly; instead, wait for the indicators to calm down and enter safe zones.
A simple exercise for followers: Open the chart of your favorite currency now... Where does the RSI indicator stand, below 30 or above 70? 👇
Write the name of the currency in the comments and I will give you my technical opinion based on the indicator.
#TradingTips #RSI #TechnicalAnalysis #BinanceSquare #cryptoeducation
