📉 RSI vs. Bollinger Bands: How to Read the Market's "Mood"

Open a pro trader's screen and it looks like a spaceship control panel. Lines, clouds, and oscillators everywhere. 🤯

But in 2026, you really only need to understand two concepts to survive: Momentum and Volatility.

Here are the two tools that actually matter:

1. The Thermometer: RSI (Relative Strength Index) 🌡️

• What it does: Tells you if the market is "Overheated" or "Frozen."

• How to use it:

• RSI > 70: The market is manic. People are FOMOing. It might be time to Sell or wait for a dip.

• RSI < 30: The market is depressed. People are panic selling. It might be time to Buy the fear.

2. The Rubber Band: Bollinger Bands 📏

• What it does: Tells you if the price is "Stretched" too far.

• How to use it:

• The price usually stays inside the bands.

• If the price shoots outside the upper band, it's like a stretched rubber band—it will likely snap back to the middle. This is a signal that the move is overextended.

⚠️ The "Lag" Warning:

Remember, these tools look at the Past. They cannot predict the future. They are like looking in the rearview mirror while driving. They tell you where you were, not where the road is turning.

#TechnicalAnalysis #RSI #BollingerBands #TradingEducation