What is the RSI?

RSI (Relative Strength Index) is a momentum indicator that measures buying strength versus selling pressure. Its value ranges from 0 to 100.

Key levels: 🔥

🔴 Above 70 → Overbought

This means the price has likely risen too far and a correction is possible (think short, but with confirmation).

🟢 Below 30 → Oversold

This means the price has fallen too far and a rebound is possible (think long, but with confirmation).

⚪ Between 30 and 70 → Normal range (normal movement).

How to use it correctly in trading (especially futures)?

1️⃣ Don't rely on it alone.

Don't short just because it's above 70 ❌

Wait for:

Trend breakout

Reversal candlestick

Strong resistance

Divergence

2️⃣ Divergence (most important for you)

If the price:

Makes a higher high

And the RSI makes a lower high

➡️ This is weak buying = potential downside 🔥

3️⃣ Best settings

Short timeframe (5m–15m): 14

If you want faster signals: 7

For calm trading: 21

A special tip for you since you short a lot ⚠️: A strong bullish market can keep the RSI above 70 for a long time, so don't rush into shorting against a strong trend 💥