### Introduction
- It is a momentum oscillator often used in technical analysis as a strong indicator
- It helps to evaluate the overbought level(intense greed) and  oversold level(intense fear)
- It's value lies between the two extremes: 0-100

### Understanding in General
- 30, 50 and 70 are globally used to understand the market.
- Around 30 or below 30= Indicates Oversold(likely to reverse)
- Around 50= Indicates indecision
- Around 70 = Indicates Overbought(likely to reverse)

In Uptrend or a bullish market, RSI shows support near 30-40 area and Resistance above 80 level. Similarly, in downtrend or bearish market, RSI represents support below 20 and Resistance near 60-70 levels.


### Using Support and Resistance along with RSI 
Similar to basic support and resistance, find the support and resistance on RSI and find the maximum touches to draw a support line.
- Enter at support and exit and Resistance



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Reference: Trade with SZ
Type: #permanentnote 
Topics: [[💹Stock Market]] [[Other/Obsidian Starter Vault(Second Brain)/🌻References/Trading]]