I've noticed that many newcomers to crypto often ignore one of the most useful tools—the RSI 14 index. I used to underestimate it too, but then I realized it's simply indispensable for analyzing price momentum.

In general, RSI 14 works very simply. Take 14 candles (this is the standard period) and observe how the asset moves. The index fluctuates between 0 and 100, and that's where it gets interesting. When RSI 14 rises above 70, it hints that the asset is overbought. It might seem like the price should go up, but often a pullback occurs. I've noticed this on Bitcoin and other altcoins—it's a regular pattern.

On the other hand, when the index drops below 30, it's an oversold zone. Usually, the price can bounce back up here. RSI 14 indicates that sellers are too aggressive, and a buying opportunity may be near.

Line 50 is like a midpoint. If RSI is above it, the trend is bullish and there’s strength. If below, the trend is bearish. It helps quickly understand which way the wind is blowing.

But what's important is not to rely solely on RSI 14. I always combine it with trend lines and moving averages. Only then can you confidently enter a position. Relying on a single indicator is like looking at the market with one eye.

How about you? Do you use the RSI 14 index in your daily analysis, or do you prefer other tools? I’d love to hear your opinion.