Cointelegraph has an explainer about RSI trading:

Knowing how to spot market reversals and when to buy the dip is nearly impossible, but the RSI indicator can help.

Note: This is not financial advice. You should consult your accountant or your financial advisor for any decisions you make.

When an asset enters a bear phase and the headlines are negative, analysts project further downside, and the sentiment shifts from optimism to pure gloom and doom. This results in panic gripped traders dumping their positions near the bottom of the downtrend instead of buying. 

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How can traders go against the herd and build the courage to buy in a bear market? It is not easy because if they purchase too early, the position may quickly turn into a loss. However, if they wait for too long, they may miss the early part of the rally.

Although pulling the trigger during a bear phase is difficult, the relative strength index (RSI) indicator can identify market bottoms and favorable risk to reward scenarios.

Let’s review a few examples of when to buy in a bear market.

Look for extremely oversold levels on the RSI

Read the rest of the article here https://cointelegraph.com/news/unsure-about-buying-the-dip-this-key-trading-indicator-makes-it-easier

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