The compression zone of the RSI, where the RSI is constrained when compared itself and the price, is the area of price accumulation.

RSI Squeeze appears everywhere from time frames big to small, from any market. For example, as follows:

At frame M5

At frame M15

At frame H1.

In the above examples in different timeframes, RSI Squeeze is displayed differently. For a larger timeframe, our look will see the smaller the oscillation displayed, the smaller the frame the larger the price display and the RSI (because the price nature is the same). It is like models such as rising seal, reducing seal, flag, ...

The specific significance of the RSI Squeeze indicates that at the time of it, price and the RSI will experience a dynamic imbalance (as mentioned in the RSI momentum post). It is shown in the figure above as the RSI is increasing, but the price is trending down, and the RSI kg is above the thresholds of the trend change level between bullish and bearish. and increase (eg rsi Squeeze kg above 40, 60 times of trend change preparation). And this lasted for a period of time, causing prices to lose their continued momentum to complete the trend change.

In general, the RSI Squeeze occurs not only in the form as in the above examples, but it can be represented in a variety of patterns and is characterized by a certain amount of time that the vertices and troughs of rsi will kg surpasses the previous high / low and the price is likely to go higher or lower. This creates the corresponding negative / positive divergence.

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