Understanding RSI: Your Quick Guide to the Relative Strength Index

The RSI (Relative Strength Index) breaks down into three essential functions every trader should know:

**Momentum Measurement** – Track market velocity and strength in real time. RSI reveals whether a move has real force behind it or is running out of steam.

**Spotting Extremes** – Identify overbought and oversold conditions where reversals often happen. These edge zones matter more than you'd think.

**Confirming Trends** – Use RSI divergence to validate whether an ongoing trend has legs or is about to crack. It's your second opinion on market direction.

Why does this matter? Because trading blind on price action alone leaves money on the table. RSI gives you the framework to make smarter entries and exits, whether you're swing trading Bitcoin, watching altcoin moves, or analyzing DeFi token patterns.