NEWS FLASH: It is not.
Technical indicators are useful when properly applied but should not be used on their own to make decisions.
The most commonly used indicator is: The Relative Strength Index or RSI.
Calculation
The RSI is calculated based on the average gains/losses over a certain time period - by default that is 14 days.The formula is:
RSI = 100 - [ 100 / (1+ RS) ]
& RS = Average Gain / Average Loss
Overbought & Oversold
Typically, RSI > 70 considers an asset to be "Overbought" and an RSI < 30 considers it "Oversold". People often here the sentence: "Sell when it's overbought and buy when it's oversold".This is a misconception and really bad advice.
Using the RSI
The Relative Strength Index is a momentum indicator. In reality, this means selling based on RSI figures above 70 often leads to one missing a major portion of a rally. Why? Because a high RSI indicates that the market is trending. The same can be applied to oversold conditions - the market is trending down and one would buy before a larger downside push.The RSI's use mainly comes in for checking on the momentum's health, whether buyers/sellers are getting exhausted but it cannot be used to find tops & bottoms. That is where the concept of divergences comes in.
RSI Divergences
When a market is trending down and price action is continually creating lower lows, while the RSI is registering higher lows then that means the downside momentum is getting exhausted and seller strength is dissipating. This is called a bullish divergence.Conversely, the opposite is also valid: higher highs in price with lower highs on the RSI indicates buyer momentum exhaustion and is called a bearish divergence.
Example
Take a look at the chart below.
Price was creating lower lows while the RSI was generating higher lows. This was indicating that each new push to the downside became shallower and eventually that led to buyers overpowering sellers and a market reversal.
Of course, the RSI is not a main decision maker but rather a confluence indicator. With a falling wedge formation and incoming price support, a bullish divergence increases the odds of success for a price reversal.
Get winning crypto tips in 5 minutes a day
Login or upgrade to Cryptonary Pro
Pro
Get everything you need to actively manage your portfolio and stay ahead. Ideal for investors seeking regular guidance and access to tools that help make informed decisions.
$799
For your security, all orders are processed on a secured server.
What’s included?
24/7 Access to Cryptonary's Research team who have over 50 years of combined experience
All of our top token picks for 2025
Our latest memecoins pick with 50X potential
On hand technical analysis on any token of your choice
Weekly livestreams & ask us anything with the team
Daily Market Updates that cover the real data that shape the market (Macro, Mechanics, On-chain)
Curated list of the most lucrative upcoming Airdrops (Free Money)
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut
through the noise and consistently find winning assets.
Frequently Asked Questions
Do I get direct access to the Cryptonary team?
Yes. You will have 24/7 to the team that bought you BTC at $1,000, ETH at $70, and SOL at $10. Through our community chats, live Q&As, and member only channels, you can ask questions and interact directly with the team. Our team has over 50 years of combined experience which you can tap into every single day.
Can I trust Cryptonary's calls?
Yes. We've consistently identified winners across multiple cycles. Bitcoin under $1,000, Ethereum under $70, Solana under $10, WIF from $0.003 to $5, PopCat from $0.004 to $2, SPX blasting past $1.70, and our latest pick has already 200X'd since June 2025. Everything is timestamped and public record.
Do I need to be an experienced trader or investor to benefit?
No. When we founded Cryptonary in 2017 the market was new to everyone. We intentionally created content that was easy to understand and actionable. That foundational principle is the crux of Cryptonary. Taking complex ideas and opportunities and presenting them in a way a 10 year old could understand.
What makes Cryptonary different from free crypto content on YouTube or Twitter?
Signal vs noise. We filter out 99.9% of garbage projects, provide data backed analysis, and have a proven track record of finding winners. Not to mention since Cryptonary's inception in 2017 we have never taken investment, sponsorship or partnership. Compare this to pretty much everyone else, no track record, and a long list of partnerships that cloud judgements.
Why is there no trial or refund policy?
We share highly sensitive, time-critical research. Once it's out, it can't be "returned." That's why membership is annual only. Crypto success takes time and commitment. If someone is not willing to invest 12 months into their future, there is no place for them at Cryptonary.
How often is content updated?
Daily. We provide real-time updates, weekly reports, emergency alerts, and live Q&As when the markets move fast. In crypto, the market moves fast, in Cryptonary, we move faster.
Recommended from Cryptonary
