QuantuminesWork with Quantumines RSI (Relative Strength Index) measures how strong recent price moves have been on a scale of 0 to 100; MACD (Moving Average Convergence Divergence) shows whether short-term momentum is speeding up or slowing down compared with the longer trend. Used together, on closed candles and with the bigger trend in mind, they help you describe what a chart is doing. They do not tell you what it will do next.
This guide explains what each line on the chart means, the common ways traders read them, the mistakes beginners make, and how to practise without risking money. It is educational only: nothing here is a recommendation to buy or sell anything.
What does RSI actually measure?
RSI was introduced by J. Welles Wilder in 1978. It compares the size of recent up-moves with recent down-moves over a set number of candles, usually 14, and turns the result into a number between 0 and 100.
- Above 50: up-moves have been bigger than down-moves over the period. Momentum leans up.
- Below 50: down-moves have dominated. Momentum leans down.
- Above 70: traditionally called "overbought": price has risen fast.
- Below 30: traditionally called "oversold": price has fallen fast.
The labels are misleading. "Overbought" does not mean "about to fall". In a strong trend, RSI can stay above 70 for days while price keeps climbing, and below 30 while it keeps sliding. Many traders find the 50 line more useful than 70 and 30: it tells you which side has had the upper hand.
What do the three parts of MACD mean?
MACD, developed by Gerald Appel in the late 1970s, is built from moving averages of price. With the standard settings (12, 26, 9) you see three things:
- The MACD line: the 12-period exponential moving average minus the 26-period one. When it is above zero, the short-term average is above the longer one.
- The signal line: a 9-period average of the MACD line, so a slower, smoother copy of it.
- The histogram: the gap between the two lines. Bars growing taller mean momentum is accelerating; bars shrinking toward zero mean it is fading.
A bullish cross is the MACD line moving above the signal line; a bearish cross is the opposite. A cross of the zero line means the 12- and 26-period averages themselves have crossed. Because MACD is made of averages, it always reacts after price has moved. That lag is the price of its smoothness.
How do you read RSI and MACD together?
The two indicators answer different questions, so they work best side by side:
- Agreement: RSI above 50 and a MACD line above its signal line both say momentum is up. When they agree, the chart is telling a consistent story.
- Disagreement: RSI rising while the MACD histogram shrinks often means a move is losing steam. It is a reason to look closer, not a forecast.
- Divergence: price makes a new high but RSI makes a lower high (or price makes a new low while RSI makes a higher low). Divergences show momentum not confirming the price move. They can persist for a long time before anything happens, and often nothing does.
Always check the timeframe. A 15-minute chart and a daily chart of the same coin can show opposite readings at the same moment. Many traders look at a higher timeframe first to decide the direction of the trend, then use a lower one for detail.
What are the most common mistakes?
- Treating 70 and 30 as sell and buy signals. In trending markets that approach repeatedly fights the trend.
- Reading unfinished candles. RSI and MACD on the current, still-open candle change until it closes. A cross you see now can disappear by the close.
- Changing settings until the past looks perfect. Settings tuned to fit last month's chart rarely fit next month's.
- Ignoring fees and volatility. On small, quick trades, exchange fees take a real share of any gain. Thinly traded coins can make indicators swing wildly.
- Using one indicator alone. Both RSI and MACD are calculated from price only. Volume, the wider market and news all matter too.
How can you practise reading them without risking money?
Look back at past charts, mark where RSI and MACD gave readings you would have acted on, and note what happened afterwards. Then test the same rules on many coins and periods, with fees included, before trusting them. Paper trading (practising with pretend money at live prices) lets you see how you react in real time. Remember that past results do not predict future ones.
Where else can you use RSI and MACD?
Both indicators are standard. Most charting sites, including TradingView and the charts built into large exchanges such as Binance, include them, and the readings are the same wherever the settings and data are the same. If you already use one of those and are happy, there is no need to switch. What differs between tools is everything around the chart: how many coins you can scan at once, whether you can set alerts on indicator values, and whether you can test a rule with fees included.
How Hunt4Coin shows RSI and MACD
Disclosure: Hunt4Coin is built and run by Quantumines, the studio that publishes this guide.
Hunt4Coin is a free crypto market website. RSI and MACD are among the 28 indicators you can add to its exchange candle charts, each with its own inputs and levels. The same indicators feed its other tools:
| Tool | What it does with RSI and MACD |
|---|---|
| Scanner | Checks the top coins by market cap on the 15-minute, 1-hour, 4-hour and daily charts for RSI (14), Stoch RSI, the MACD histogram and the number of bars since the last MACD cross. Ready-made scans include oversold RSI and fresh MACD cross. |
| Alerts | Alerts on RSI, MACD and other indicators on any timeframe, checked on closed candles, sent to Telegram, Discord, email or the browser. Up to 200 alerts. |
| Backtester | Tests entry and exit rules built from indicators on past candles, with exchange fees included. |
| Paper trading | Practise with pretend money at live exchange prices, with 0.1% fees per side. |
Its free signals show one way RSI can be used as a filter rather than a trigger: a coin is listed only when it is in a daily and 1-hour uptrend with the 1-hour RSI at 54.01 or more and the 30-minute RSI at 55.01 or more, and it leaves the list when the 1-hour RSI reaches 70. Every signal is logged and judged automatically on a public track record. Hunt4Coin never places real trades and never asks for exchange API keys. It is information only, not financial advice.
Facts from hunt4coin.com, checked on 5 November 2026.
Frequently asked questions
What are the best RSI settings for crypto?
The standard is 14 periods with levels at 70 and 30. Some traders use shorter periods for more sensitive readings, which also gives more false alarms. There is no setting that works on every coin and timeframe.
Is a MACD cross a buy signal?
Not on its own. A cross says the short-term average has moved relative to the longer one; it lags price and produces many crosses in sideways markets. Traders usually look for confirmation from the trend, volume or another indicator.
Which timeframe should I use?
The one that matches how long you plan to hold. Readings on short timeframes change quickly; daily readings change slowly. Checking a higher timeframe first gives context.
Do RSI and MACD work on every coin?
They can be calculated on any coin with price history, but on thinly traded coins a few large orders can move them sharply, so readings are less reliable.
Where can I see both for free?
Most charting sites include them free. On Hunt4Coin you can also scan and set alerts on them at no cost.
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