I've noticed that many new traders don't fully understand how RSI works, so I'm going to share how I use it in my daily analyses.

First, the basics: the Relative Strength Index is a tool that shows you whether a crypto has risen or fallen too much in a short period. It operates on a scale from 0 to 100, and that's the important part you need to remember.

When I look at the chart, the first thing I check is where that index is. If it's above 70, we're in overbought territory. That means there have probably been too many buy orders, and the price could pull back soon. It's not a guarantee, but it's a signal worth watching.

The opposite happens below 30. Here, we have oversold conditions, suggesting the asset was sold too quickly and might bounce back. Again, it's a clue, not a certainty.

The 50 line is my midpoint reference. If the Relative Strength Index crosses upward, I see bullish strength. If it drops, the market is showing bearish weakness. Simple, but effective.

Now, here’s my most important advice: never use RSI alone. I always combine it with trend lines and moving averages to confirm what I see. An isolated indicator can deceive you. I've learned this the hard way.

When I trade Bitcoin, Ethereum, or any altcoin, I always verify multiple signals before entering. The Relative Strength Index is a piece of the puzzle, not the whole puzzle.

And you? Do you trust this indicator in your trades? I’d like to know if you use it and how you combine it with other tools.