The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. Developed by J. Welles Wilder Jr., RSI typically ranges from 0 to 100 and is primarily used to identify overbought or oversold conditions in a market. Traditionally, an RSI above 70 indicates that a security may be overbought, while an RSI below 30 suggests it may be oversold. Traders often use this indicator to generate signals for potential reversals or to confirm trends. It is essential to note that, like any technical indicator, RSI should be used in conjunction with other analysis tools for a more comprehensive view of market dynamics.
