#Gate.io 空投发现指南# The Relative Strength Index (RSI) is a Technical Analysis tool. Here are some clever ways to use RSI:

Overbought and Oversold Judgment

- The RSI value fluctuates between 0 and 100. It is generally believed that when the RSI value exceeds 70, the market is in an overbought state, and the price may correct; when the RSI value is below 30, the market is in an oversold state, and the price may rebound.

Divergence Analysis

- When the price reaches a new high, but the RSI fails to reach a new high simultaneously, forming a divergence, this may signal that the price is about to reverse downward. Conversely, when the price reaches a new low, but the RSI fails to reach a new low simultaneously, forming a divergence, it indicates that the price may soon reverse upward.

Trend Judgment

- When the RSI is above 50, it indicates that the market is strong, and the higher the value, the stronger the bullish force; when the RSI is below 50, the market is weak, and the lower the value, the stronger the bearish force. At the same time, the rising and falling trend lines of the RSI can help determine whether the price trend will continue or reverse.

Crossover Signal

- The short-term RSI line crosses above the long-term RSI line, forming a golden cross, which is a buy signal; the short-term RSI line crosses below the long-term RSI line, forming a death cross, which is a sell signal.

In practice, the RSI indicator is often used in conjunction with other technical analysis tools such as candlestick charts and moving averages to improve the accuracy of signals. At the same time, the RSI parameter settings and applications may vary across different markets and trading instruments, requiring investors to adjust and optimize based on actual conditions.