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Just noticed something worth understanding about the RSI heatmap if you're tracking crypto assets. A lot of people glance at these indicators but don't really dig into what they mean for actual trading.
So here's the thing: RSI, or Relative Strength Index, runs on a 0 to 100 scale. The way I think about it is pretty straightforward. When you're looking at a crypto heatmap and the RSI climbs above 70, that's basically the market telling you an asset has been pushed pretty hard. The signal here is that a price correction could be coming down the line. It's not a guarantee, but it's worth paying attention to.
On the flip side, when RSI dips below 30 on your heatmap, you're looking at oversold territory. This is where things get interesting because it often suggests the asset might be due for a bounce back up. Again, not a certainty, but it's a pattern worth monitoring.
What I find useful about the RSI heatmap approach is how it lets you scan across multiple crypto positions at once and spot which ones are stretched in either direction. Some traders use this as a contrarian signal, others as confirmation of existing trends. The key is understanding that RSI is just one tool in the toolkit.
If you're getting into technical analysis on crypto markets, spending time with RSI heatmap data is definitely worth your while. It's one of those indicators that shows up everywhere for a reason.