RSI (Relative Strength Index)
A 0–100 momentum oscillator flagging when an asset may be overbought or oversold.
The Relative Strength Index measures the speed and magnitude of recent price changes on a 0–100 scale. Readings above 70 are conventionally “overbought” (a rally may be overextended) and below 30 “oversold” (a decline may be exhausted). It’s among the most popular momentum indicators.
The honest caveat every experienced trader learns: in strong trends, RSI can stay overbought or oversold for a long time while price keeps going — “overbought” is not a sell signal by itself. Its more respected use is spotting divergence (price making new highs while RSI doesn’t, hinting at weakening momentum). Useful context, not a mechanical trigger.