RSI Trading Strategy

Buy Signal: If the RSI value falls below 20, it indicates that the asset is oversold and may be undervalued. In such situations, traders consider it a buy signal, expecting the price to rebound from the oversold region and potentially move higher. Sell Signal: Conversely, when the RSI value rises above 80, it suggests that the asset is overbought and may be overvalued. Traders interpret this as a sell signal, anticipating a possible price correction or reversal to the downside.