Use of RSI in Advance Trading

RSI values are typically used to identify overbought and oversold conditions. A reading above 70 suggests that the asset may be overbought and could be due for a downward correction. On the other hand, a reading below 30 indicates that the asset may be oversold, signalling a potential upward reversal.

The best RSI settings are typically a 14-period timeframe with 70 as the overbought level and 30 as the oversold level. These settings can be adjusted based on specific trading strategies.

The RSI provides technical traders with signals about bullish and bearish price momentum, and is often plotted below the graph of an asset's price. An asset is usually considered overbought when the RSI is above 70 and oversold when it is below 30.