RSI is a momentum indicator from 0 to 100 that gauges whether an asset may be overbought or oversold based on recent price changes.
The Relative Strength Index, or RSI, is a technical momentum indicator that measures the speed and magnitude of recent price moves on a scale of 0 to 100.
Traditionally, an RSI above 70 suggests an asset may be overbought and due for a pullback, while an RSI below 30 suggests it may be oversold and could bounce. These are guidelines, not guarantees.
RSI is calculated by comparing the average size of recent gains to the average size of recent losses over a set period, usually 14 days.
Traders use RSI to spot potential reversals and confirm trends, often alongside other indicators. In strong trends, RSI can stay overbought or oversold for long stretches, so it works best as one input among several.
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