RSI (Relative Strength Index)
A 0-100 momentum gauge
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and magnitude of recent price changes on a scale of 0 to 100. It's typically calculated over a 14-period lookback, comparing the average size of recent gains to the average size of recent losses.
Overbought, oversold, and divergence
Classic RSI interpretation uses 70 and 30 as thresholds: a reading above 70 suggests the instrument may be "overbought" (potentially due for a pullback), and below 30 suggests "oversold" (potentially due for a bounce). RSI divergence — where price makes a new high/low but RSI doesn't confirm it — is often watched as an early warning of weakening momentum.
- RSI > 70: often read as overbought
- RSI < 30: often read as oversold
- RSI around 50: often read as neutral/balanced momentum
- In a strong trend, RSI can stay "overbought" or "oversold" for a long time — it is NOT an automatic reversal signal by itself.
Pro Tip
The single biggest RSI mistake: treating "overbought" as "sell immediately." In a strong uptrend, RSI can sit above 70 for a long stretch while price keeps climbing — overbought means stretched, not guaranteed to reverse.
Check the live Technical Analysis report
Honest heads-up: this project only has the current live price, not a price history, so the report's RSI section is explicitly marked unavailable rather than faking a reading — see why there.
Checkpoint Quiz
Checkpoint Quiz
Question 1 of 5What range does the RSI indicator oscillate within?