I've noticed that many in the community ignore one of the most useful tools for analysis — RSI 14. Honestly, it's one of my main helpers when reading charts.

The essence is simple: it's an indicator that shows whether the market is overbought or oversold by buyers or sellers. It operates on a range from 0 to 100, and here’s what’s really important to know.

When RSI 14 rises above 70 — that's the overbought zone. It sounds like a signal for a reversal, but I wouldn’t rush to sell everything. It just indicates that the asset has been actively bought, and a correction might occur. Below 30 — the opposite situation, the oversold zone. The price might bounce back up because there are too many sellers.

The 50 line in the middle is a kind of balance. If the index is above it, the trend is upward and strong. If below — look at the downward trend. This helps understand the direction.

But here’s what’s critical: RSI 14 is not a magic wand. I always combine it with other tools. Moving averages, trend lines, support and resistance levels — all together give a complete picture. One indicator can give false signals, especially in sideways markets.

In practice, I use RSI 14 to confirm entries and exits. If all tools point in the same direction — that’s when I act confidently.

What tools do you use? Write in the comments. By the way, on Gate, you can always check these levels on BTC, BNB, or other assets directly on the charts.