Relative Strength Index

The Relative Strength Index (RSI) is an oscillator, a technical indicator that produces overbought or oversold signals, usually within a specific trend channel or sideways range.

RSI measures the relative change in price, producing a value between 0 and 100; Values below 30 generally indicate oversold and values above 70 generally indicate overbought. Traders can make trading decisions by interpreting these signals together with supporting data. Because the RSI s outputs are created by comparing price momentum in two different directions, it is usually placed at the bottom of the price chart and, like other technical indicators, points where the signals are in line with the long-term trend are considered safe.

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