RSI Indicator: Relative Strength Index

Welcome to Lesson 1 of Forex Indicators by PROP365 Academy. In this lesson, you will learn how the RSI indicator (Relative Strength Index) helps traders identify market momentum, overbought and oversold conditions, and trend direction. Mastering the RSI gives you an edge in timing your entries and exits in the forex market.

What is the RSI Indicator?

The RSI indicator measures momentum on a scale from 0 to 100. Readings below 30 indicate oversold conditions, suggesting a possible buy opportunity. Readings above 70 show overbought conditions, signaling potential sell points. RSI values above 50 generally point to an uptrend, while values below 50 show a downtrend.

How to Use the RSI

Use the RSI indicator in two key ways:

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Disclosure: All information provided on this site is intended solely for educational purposes related to trading on financial markets and does not serve as a specific investment recommendation. This is not an investment opportunity. You do not deposit any funds for investment. We do not ask for any funds for investment. There are no promises of rewards or returns. It’s crucial to differentiate between purchasing a program from PROP365 and depositing in a financial institution. The fees you pay for our programs are not deposits. PROP365 does not offer financial advice or issue or deal in financial products. All trading will occur on demo accounts under simulated live trading conditions. All funds are simulated trading funds, and all profits are simulated profits.

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