What is rsi and sma means in graphic chart

In a graphic chart, the Relative Strength Index (RSI) and Simple Moving Average (SMA) are technical indicators used to analyze and predict market trends:

1. RSI: The RSI is a momentum indicator that measures the speed and change of price movements to evaluate overbought or oversold conditions. The RSI is displayed as a line graph oscillating between 0 and 100. Typically, an RSI above 70 is considered overbought, indicating a potential price correction, while an RSI below 30 suggests an oversold condition, which may precede a price rebound.
2. SMA: The Simple Moving Average (SMA) is a trend indicator that smooths out price data by calculating the average price over a specified period. It is often used to identify the direction of a trend by comparing the current price to the moving average. If the price is above the SMA, it is generally considered to be in an uptrend, while a price below the SMA suggests a downtrend.

These indicators are crucial tools for traders and investors as they provide insights into market momentum, potential reversals, and the strength of a trend. By incorporating RSI and SMA into your chart analysis, you can make more informed decisions regarding your trading strategies.