RSI (Relative Strength Index)

This is a number from 0-100 that gives the relative strength of a given coin as a percentage. The “sweet spot” is 40-70%. Anything above 70% is considered overbought; there have been more buys on the market than the volume of the market can support. This means “don’t buy, you idiot”. Under 40% is considered oversold; there’s been fewer sells on the market than the volume of the market should’ve had. This is usually a good “it’s relatively safe to buy” point.

Here you can see the chart with b-bands at the top, MACD in the middle, and the RSI on bottom. You’ll see the coin had a pretty big red candle (thanks BTC) and then some waves since then. MACD is still indicating a good time to buy with a previously strong buy indicator. At the bottom you’ll see the RSI. TradingView defaults this to 30-70% but I rein it in so it keeps me out of trouble. This coin is currently at 40%.

Combine all the indicators:
B-bands say it’s coming off the bottom band testing the middle band for a second time
MACD says it’s still a good time to buy, lines haven’t crossed yet
RSI says it’s neither oversold nor overbought

All this adds up to “this is probably a safe buy”

Disclaimer: Any information on this website should not be considered financial advice. Trading has inherent risks and you should not use any money you cannot afford to lose to trade. Consult with a financial adviser on what may be the best course of action for investing given your individual circumstances.