RSI Indicator

Used in cryptocurrency technical analysis, the RSI Indicator is a momentum-based leading indicator that generates overbought and oversold signals. Being a leading indicator assumes that the movement in the indicator will precede the movement in prices. According to the RSI formula, it takes a value between 0-100. In the RSI Indicator, when the value falls below 30, it is considered an oversold zone, and when the value rises above 70, it is considered an overbought zone.

Disputes in RSI

One of the issues that investors pay attention to the most in the RSI Indicator when performing crypto currency technical analysis is inconsistencies. In RSI, discrepancies occur as a result of the reverse movement of the graphic and RSI indicator. While the RSI is making upwards rising lows, the lowering of the prices is called a bullish divergence (positive divergence), and it can give a bullish signal as the RSI will be followed in general.


While making downward descending peaks on the RSI Indicator, upward peaks on the Chart is a bearish divergence (negative dissonance) and generally gives a bearish signal as the RSI will be followed.

Conflicts may be more significant if they occur above 70 and below 30. In short, the indicator does not confirm the price in case of disputes.

How to Calculate RSI Indicator

Two formulas are used while calculating the RSI indicator. The formulas used in calculating the RSI Indicator are: *RSI= 100 – 100 / 1+ RS (In the first 14 periods) *RS=Average of positive bites / Average of negative bites

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