RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are two of the most widely used momentum indicators in technical analysis. RSI measures whether a security is overbought or oversold; MACD highlights momentum shifts via the relationship between two moving averages.
How traders use them
RSI — readings above 70 suggest overbought conditions, below 30 suggest oversold; divergences with price often precede reversals.
MACD — signal line crossovers and histogram expansion can confirm trend changes; divergences flag weakening momentum.
Confluence — combining RSI and MACD with support/resistance and candlestick patterns improves setup quality.