The Relative Strength Index (RSI) measures the speed and size of recent price moves on a scale from 0 to 100. It's one of the most widely used momentum indicators because it's simple to read at a glance.
Readings above 70 are traditionally considered "overbought" (price has risen quickly and may be due to pause or pull back), while readings below 30 are considered "oversold." These are guidelines, not guarantees — a strong trend can stay "overbought" for a long time.
RSI is often more useful for spotting divergence — when price makes a new high or low but RSI doesn't confirm it — than for treating 70/30 as an automatic buy or sell signal. Like moving averages, it works best combined with other context, such as support/resistance or trend direction.
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