What does RSI indicate in trading?

>RSI is a momentum indicator which measures the momentum strength of the stock or index. Traders identify whether the security is overbought, oversold, or gaining/losing momentum.

What is the best RSI setting?

traders use the default 14-period RSI. But, short-term traders may use 7–9 periods for quicker signals, while positional traders may prefer 21 periods for smoother readings.

What is RSI divergence?

rgence occurs when price and RSI move in opposite directions. It signals trend is losing momentum and a possible trend reversal.

Can RSI be used for intraday trading?

Yes, many traders use RSI for intraday trading. You can use 5-minute or 15-minute charts to identify short-term overbought or oversold signals.

Is RSI better than MACD?

ACD serve different purposes. RSI focuses on momentum and overbought/oversold levels, while MACD focuses more on trend and crossovers.