Technical analysis · Glossary
Relative Strength Index (RSI)
A momentum oscillator commonly displayed on a 0–100 scale.
Definition and explanation
The Relative Strength Index compares the magnitude of recent gains and losses over a chosen lookback period. Traders often use 70 and 30 as traditional overbought and oversold reference levels, but strong trends can keep RSI elevated or depressed. RSI is a descriptive indicator, not a standalone prediction.
Example
An RSI reading above 70 can indicate strong recent upward momentum; it does not guarantee an immediate decline.
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