Indicators
RSI stands for Relative Strength Index. It is a momentum indicator that measures how strong recent buying or selling has been on a scale from 0 to 100.
RSI does not directly tell you whether price will go up or down next. It tells you how strong recent momentum has been.
If price has been rising aggressively, RSI usually moves higher. If price has been falling hard, RSI usually moves lower.
That is why traders use RSI as a momentum reading, not as a magic buy or sell button.
Usually means momentum is very strong to the upside.
It can also mean price is getting extended and may pause, cool off, or pull back.
Usually means momentum is balanced or unclear.
This often happens when the market is neutral, mixed, or consolidating.
Usually means downside momentum is strong.
It can also mean price is oversold and vulnerable to a bounce.
Important:
Overbought does not automatically mean price must fall, and oversold does not automatically mean price must rise.
Strong trends can stay overbought or oversold longer than many beginners expect.
Price pushing higher with strong recent momentum
Momentum rising with price, pushing RSI toward the upper zone
Divergence happens when price and RSI stop behaving in sync.
Price makes a lower low, but RSI makes a higher low.
This can suggest selling momentum is weakening, even though price is still falling.
Price makes a higher high, but RSI makes a lower high.
This can suggest buying momentum is weakening, even though price is still rising.
Mistake: using RSI alone
Many beginners see RSI above 70 and instantly think “sell,” or RSI below 30 and instantly think “buy.”
That is too simplistic. RSI works better when combined with trend, structure, support and resistance, volatility, and multiple timeframes.
MarketBiasTracker uses RSI as one part of a wider market-reading system.
It does not rely on RSI alone. It combines RSI with trend structure, EMA relationships, volatility, volume, and advanced conditions like divergence and liquidity behavior.
RSI helps measure whether recent buying or selling is strong.
RSI becomes more useful when it agrees or conflicts with trend structure.
MBT treats RSI as supporting evidence, not a single decision maker.
Strong recent upside momentum.
Strong recent downside momentum.
Balanced or mixed momentum.
Combine it with trend, structure, and context.
Next we can build EMA, ATR, liquidity sweep, divergence, or candlestick pattern pages in the same style.
