The learner can distinguish momentum from direction, read RSI as a measure of relative recent gains and losses, treat 30/70 as reference zones rather than commands, interpret overbought and oversold conditions without expecting automatic reversals, recognise divergence as a warning rather than a signal, attach RSI readings to their timeframe, and keep RSI subordinate to price structure.
15 teaching sectionsExamples and misconceptionsInteractive version available
LESSON 01
Momentum is speed, not direction
Separate momentum from trend direction.
Momentum describes the pace or rate of price change, not whether price is rising or falling in absolute terms. A market can rise slowly and still be in an uptrend; another can fall quickly with strong downward momentum. RSI is a momentum oscillator, so it measures speed and change, not the trend itself.