RSI Explained: Formula, Overbought Levels, Divergences
How the Relative Strength Index measures momentum, why 70/30 aren’t magic numbers, and how RSI divergence warns of trend exhaustion.
How the Relative Strength Index measures momentum, why 70/30 aren’t magic numbers, and how RSI divergence warns of trend exhaustion.
SMA and EMA in plain English: exact formulas, a worked example, the 50/200 Golden Cross, and the traps that fool most traders.
Bollinger Bands explained plainly: the formula, John Bollinger’s own rules, the squeeze setup, and the mistakes that fool retail traders.
MACD explained plainly: the formula, the three signals traders watch, a worked example, and where the indicator quietly misleads you.
Relative Strength (RS) and the Relative Strength Index (RSI) sound alike but measure totally different things. Here’s the clean distinction.