RSI = Relative Strength Index Is fluctuates between 0 and 100 • A momentum Oscillator • Increasing RSI when: Average gains are greater than average losses = Bullish • Decreasing RSI when: Average gains are less than average losses = Bearish How to use: 1. Trend recognition: trading in the direction of the trend 1.1 Above 50: Uptrend 1.2 Below 50: Downtrend 2 Overbought and oversold entry signals. 2.1 In an uptrend look for oversold areas and open a long trade after the pullback above 30. 2.2 In a downtrend look for overbought areas and open a short trade after the pullback below 70.