VideoWhat the RSI indicator actually tells you (and what it doesn't)
RSI measures how stretched a recent move is on a 0 to 100 scale. It is useful for timing, useless for prediction, and misread by most beginners.
Technical analysis
The general direction of price over a period: higher highs and higher lows in an uptrend, lower highs and lower lows in a downtrend.
A trend is the direction price has been moving. An uptrend is a series of higher highs and higher lows; a downtrend is lower highs and lower lows; when neither holds, the market is sideways or ranging. Trends exist on every timeframe, and they can conflict: a stock can be in a daily uptrend and an hourly downtrend at once. Traders identify trend with structure on the chart, with moving averages, or with trendlines drawn through swing points. If SBI moves from ₹740 to ₹800 with pullbacks that each stop above the previous low, it is trending up. The common advice to trade with the trend exists because a move already under way is more likely to continue than reverse, though it will eventually reverse. The mistake is not spotting a trend; it is assuming it will last forever and forgetting the stop loss.
VideoRSI measures how stretched a recent move is on a 0 to 100 scale. It is useful for timing, useless for prediction, and misread by most beginners.
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