Recently, I was asked about RSI and I decided to share what I know. This indicator is quite useful if you know how to interpret it correctly. Basically, the RSI indicator measures the price momentum over a specific period, usually 14 candles or days in the standard setup. It gives you a clear idea of whether an asset is being overbought or oversold.

The scale ranges from 0 to 100, and there are three zones that really matter. When you see the RSI above 70, we're talking about overbought conditions, meaning the asset was probably pushed too high and may be near a pullback. Many traders use it as a signal to consider taking profits.

On the other side, when it drops below 30, it's the oversold zone. Here, the price has been pressured too far downward, and it's often when you see interesting rebounds. The 50 line is your equilibrium point; an RSI above it suggests bullish momentum, below it is bearish.

Now, here’s the important part: the RSI indicator is only one piece of the puzzle. I’ve seen people use it as the sole tool and end up losing money. Always combine it with other indicators like moving averages, trend lines, or support and resistance levels. With $BTC, $BNB , and other volatile assets, you need confirmation from multiple angles before acting.

In my experience, when the RSI aligns with other technical signals, that’s when it really works well. It’s not magic, but when you use it correctly as part of a broader strategy, it helps you identify entry and exit points much more intelligently. That’s what makes the difference in long-term trading.