RSI Indicator

Technical Analysis

Definition

The Relative Strength Index is a momentum oscillator that measures the speed and change of price movements on a scale from 0-100, used to identify overbought and oversold conditions in securities.

Key Points

  • Oscillates between 0 and 100
  • Above 70 typically considered overbought
  • Below 30 typically considered oversold

Examples

RSI at 85 suggests stock may be overbought
RSI at 25 indicates potential oversold bounce