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Relative strength vs. MACD
Based on current price levels, the relative strength indicator (RSI) is used to evaluate whether a market is overbought or oversold. The MACD assesses the connection between two exponential moving averages (EMAs), whereas the RSI tracks price movement in respect to recent highs and lows. These two indicators are typically employed in tandem to provide analysts with a more complete technical picture of a market. For example, the RSI may remain over 70 for an extended period of time, suggesting that the market is overextended to the buy-side in relation to current prices, yet the MACD suggests that the market is still building purchase momentum. Any indication that displays divergence from price may suggest an upcoming trend shift.

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