Why Is RSI Important? Traders can use RSI to predict the price behavior of a security. It can help traders validate trends and trend reversals. It can point to overbought and oversold securities. It can provide short-term traders with buy and sell signals. It's a technical indicator that can be used with others to support trading strategies.
A bearish divergence occurs when the RSI creates an overbought reading followed by a lower high that appears with higher highs on the price
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