Tradingview offers multiple indicators that one can use to analyze Crypto Market. RSI indicator is one of them. In this write-up, we shall learn how to use the RSI indicator in crypto trading as well as we will discuss its settings.
RSI stands for “Relative Strength Index”. It is a free indicator that we can use in TradingView.
How to use RSI Indicator in Crypto?
RSI offers values on a scale from 1 to 100. Typically the lower band value by default is set as 30 and the upper band value as 70.
RSI 30 or Below
If RSI is 30 or below, it means the asset or the particular crypto token is oversold, and now is the time to buy.
In other words, a value of 30 or below indicates that the particular token is in the buying zone. Now the buyers will buy the token that will ultimately pump the token indicating an upward price movement.
Hence, RSI 30 or less is an indication of upward price movement.
RSI 70 or Above
If RSI is 70 or above, it typically indicates that the crypto token is overbought and is in the sell zone where large sell orders will be executed now. This will cause the price to fall.
Hence, RSI 70 or above indicates an incoming dump.
In short, RSI simply provides us a hint of the next movement of the crypto coin.
However, one must take into account other factors and fundamentals like micro and macro indicators and must not solely rely on RSI indicators to take entries.
RSI Indicator in TradingView
Once you open an advanced chart on TradingView, you can find indicators on the top bar.
Type RSI and select Relative Strength Index.
The RSI indicator will appear at the bottom of the chart by default. However, you can move it to the top as well.
RSI Indicator Settings on TradingView
Keep the following settings for your RSI indicator in TradingView.