Technical indicators · Chapter 16 of 31
What is RSI?
The Relative Strength Index, a momentum gauge from 0 to 100, and how its overbought and oversold zones frame a move.
The Relative Strength Index (RSI) measures the speed and size of recent price changes on a scale from 0 to 100. It is one of the most widely used momentum indicators.
Overbought and oversold
Readings above 70 are traditionally called overbought, and readings below 30 oversold. These are not automatic sell or buy points; they mark where momentum has stretched and may pause or reverse.
Trends bend the rules
In a strong trend, RSI can stay overbought or oversold for a long time. That is why RSI works best alongside context, not on its own.
Divergence
When price makes a new high but RSI does not, momentum is fading even as price rises. This divergence is a classic early warning that a move is losing strength.
Set an alert
You can set an RSI alert on any instrument to be notified when it crosses a level you choose, so you do not have to watch the chart. This is available on the free plan.
Now watch this signal update in real time across the market.
See it liveEducational content, not financial advice.