01

What it answers

RSI is not a buy-low or sell-high button. It helps you judge whether momentum is improving, weakening, or stretched.

02

How to read it

When RSI rises with price, momentum is supporting the move. When it holds above a recent support area, momentum may still be constructive. When price rises while RSI weakens, momentum is not fully confirming. Be more patient.

03

Simple example

Trend is up and price pulls back into a useful Volume Profile area. RSI stops falling and begins to turn up while price reclaims a short-term level. That is better timing than buying simply because the cloud is green.

04

What it does not tell you

RSI does not predict a reversal. Strong names can stay strong, and weak names can stay weak.

05

FlowState takeaway

Momentum helps with timing. Price still has to confirm.