Many people learn trading, the first 'iron law': RSI > 70 = overbought = time to sell. As a result, selling halfway up, the market continues to soar, and you doubt life outside the market. This is not bad luck, but from the beginning, the RSI was used incorrectly.

Today I will teach you the correct way to use RSI (Relative Strength Index).

1. The biggest misconception: treating RSI as 'brake pads'. Beginners treat RSI as a dangerous alarm 🚨.

70: dangerous

80: extremely dangerous

90: collapse imminent

Selling on a spike is a conditioned reflex. Wrong!

The real danger in the market is not when RSI is too high, but when RSI can no longer rise.

2. The essence of RSI: It is the 'throttle gauge', not the brake. RSI measures momentum, not the price's value.

In a one-sided bull market, RSI consistently stays above 70–80 and repeatedly diverges, indicating: strong bullish momentum, capital is strongly pushing prices, this is not a risk, but an advantage! 📈

Is it time to sell or short? It's like going against traffic on the highway.

Three, High-Level Divergence: The strongest signal in a bull market is when RSI quickly rises to 70–80, with a shallow pullback, not leaving.

This means: the trend is extremely strong, the market has no patience for a pullback, the main force is accelerating ⏩ beginners are selling, the main force is pulling — this is often the most violent segment!

Four, the only reliable selling signal: peak divergence

Don't care about 70, 80, 90. Just look at the peak divergence: price creates new highs

RSI has not made a new high, but instead has gone lower

This is what it means to ‘hit the gas but not move’ — buying pressure is exhausted, the main force may be unloading, real risks are coming.

Summary: Two RSI rules, do not sell in a bull market when high-level divergence: RSI > 80 do not panic, shallow pullbacks do not short, hold on as long as the trend is not broken.

Only look at divergence, not absolute values: when momentum can't keep up with price, that's the real selling point.

RSI tells you who is in control of the market: Strong bullish momentum → Don't stand against it

Momentum weakening → Caution

Just two simple moves, use RSI correctly, you won't miss out in a bull market‼️