The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. Typically, the RSI ranges from 0 to 100 and is primarily used to identify overbought or oversold market conditions. An RSI value above 70 generally indicates that an asset may be overbought, while a value below 30 suggests it may be oversold. Traders often use these levels to make decisions about buying or selling. The RSI is calculated based on average gains and losses over a specified period, often 14 days. This technical indicator can be useful for understanding the market's strengths and potential price reversals.
Technical Analysis