Best Intraday Trading Strategy Using RSI Indicator

 RSI a Technical Analysis Indicator

In technical analysis, the Relative Strength Index (RSI) is a momentum indicator which helps a trader get entry and exit points in a trade, and also define the next expected trend in the stock market prices . RSI (Relative Strength Index) is a oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and gives a trader overbought and oversold zones and placing the trades accordingly. Above 70 is considered overbought zones and markets might see some selling from here. Below 30 is oversold zone and market may seeing upward trend from here . 30-70 is neutral zone This simple range makes RSI a go-to indicator for traders looking to time their entries and exits more effectively. 🧠 How RSI Helps in Trading Decisions Spotting Reversals RSI can signal when a stock’s momentum is slowing, which could lead to a reversal. Confirmation of Trends If you take a buying position and RSI stays above 50 it shows rsi is following current trend. Divergence Alerts A divergence between RSI and price action (e.g., price goes up, RSI goes down) may warn of a trend reversal. Eg. If a stock is trading at ₹500 and the RSI is at 82. That means it might be overbought, and a correction could come soon. On the other hand, if the rsi is dropping below 25 it might show a soon to come uptrend in prices. Final Thoughts While RSI is a very powerful technical indicator and it can increase your profit probability if you use other indicators too with it. Want to Learn More? Explore how to use RSI and other technical indicators with hands-on strategies at 👉 MHV Education – Best Stock Market Course in Dehradun We offer beginner-to-advanced trading mentorship with real market insights.

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