📝 What is RSI (Relative Strength Index)?

🔍 What is RSI (Relative Strength Index)? 🤔 RSI is like the mood indicator of a stock! 📈📉 It tells us whether a stock is feeling "too tired" (overbought) or "too lazy" (oversold). ✅ Full form: Relative Strength Index ✅ It's a tool that shows how fast and how much the price of a stock is moving. Think of RSI like a thermometer 🌡️ — it shows if the stock is too hot (overbought) or too cold (oversold). 📢 How RSI Works? RSI is shown as a number between 0 and 100. ✔️ RSI above 70 = Overbought (too many people bought it, price may fall) ❌ ✔️ RSI below 30 = Oversold (too many people sold it, price may rise) ✅ In the middle (between 30 and 70), the stock is normal and stable 😊. 🎯 Why is RSI Important? RSI is like a stock’s health report! 🏥 ✔️ If RSI is too high (above 70), the stock is tired 😫 — maybe time to take a rest (fall). ✔️ If RSI is too low (below 30), the stock is sleepy 😴 — maybe time to wake up and rise! 🎨 Super Simple Example: Imagine you’re running 🏃‍♂️ fast for a long time: ✔️ After some time, you get tired — you can’t run forever. You stop to rest. (Just like a stock falls after going up too much — RSI above 70!) ✔️ Or imagine you are sleeping 🛌 too long — someone will wake you up! The stock also jumps up after falling too much — RSI below 30! So RSI shows whether the stock is running too fast or sleeping too much! 💡 How to Use RSI in Trading? 1️⃣ RSI Above 70 = Maybe time to SELL or be careful. 🚫 (Stock may fall as it's too "hot") 🔥 2️⃣ RSI Below 30 = Maybe time to BUY or watch closely. ✅ (Stock may rise as it's too "cold") ❄️ 3️⃣ RSI Between 30 to 70 = No strong signal. (Stock is behaving normally) 🙂 ⚠️ Warning: ✔️ RSI does NOT guarantee exact buying or selling points! ✔️ Stocks can stay "overbought" or "oversold" for a long time. So always use RSI with other tools like Volume, Moving Averages or Trendlines! 🎯 🎯 Real-Life Example: Imagine a balloon 🎈. If you keep blowing air into it — it will burst if you overdo it! 💥 (This is RSI above 70 — too much buying!) If the balloon is completely flat — someone may start filling air into it again! (This is RSI below 30 — too much selling!) 🎉 Summary in Very Simple Words: 🔹 RSI tells if the stock is tired or sleepy. 🔹 Above 70 = Overbought = Careful! Maybe sell! 🔹 Below 30 = Oversold = Watch for rise! Maybe buy! 🔹 Great tool to know the stock’s mood! 😊 🛡️ Disclaimer: ⚠️ Disclaimer: The content provided on this website is for educational and informational purposes only. It should not be considered as investment advice, stock tips, or financial recommendations. Always do your own research or consult a SEBI-registered investment advisor before making any trading or investment decisions. 📢