Wondering how to trade with RSI indicator?

Wondering how to trade with RSI indicator? The Relative Strength Index (RSI) is a versatile momentum oscillator that helps you spot overbought, oversold, and shifting market momentum across any timeframe. On a 0–100 scale, readings above 70 often warn of stretched bullish moves, while readings below 30 flag potential exhaustion in selling. Traders use RSI to time entries, confirm trends, and avoid chasing price. Practical approaches include buying pullbacks in uptrends when RSI recovers from 30–40, shorting rallies in downtrends when RSI rolls over near 60–70, and using bullish or bearish divergence to anticipate reversals. Popular settings are 14-period RSI, adjusted to 7–10 for faster signals or 20–21 for smoother confirmation. Combine RSI with support/resistance, moving averages, or price action to filter false signals and define risk. Plan trades with clear rules: trigger, stop, target, and position size. With discipline and a repeatable checklist, the RSI can become your edge for day trading, swing trading, and longer-term investing.

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