RSI Indicator: How It Works, Settings, and Strategy

Minimalist trading chart divided into two horizontal panels the upper panel shows a clean candles...

This guide explains the RSI indicator in clear, practical terms so you can time entries and exits with more discipline. You’ll learn how RSI measures momentum, why overbought and oversold levels behave differently in trends versus ranges, and how to adjust periods and thresholds for your market and timeframe. The article covers common pitfalls, divergence signals, and step‑by‑step rules you can backtest and even automate, helping you turn RSI from a vague oscillator into a repeatable trading edge.