The Relative Strength Index (RSI) is a momentum oscillator that summarizes recent gains and losses over a chosen lookback period. It describes historical price behavior; it does not forecast future returns.
Common RSI levels
Traders often watch 70 and 30 as conventional overbought and oversold reference levels. These are not automatic sell or buy instructions, and strong trends can keep RSI elevated or depressed for extended periods.
Timeframes and settings
RSI changes with its lookback period, candle interval, price source and calculation convention. When comparing readings, use consistent settings and data sources.
Limitations
RSI can produce false signals, especially in volatile or strongly trending markets. Consider broader price structure, volatility, liquidity and risk management rather than relying on a single indicator.
Disclaimer: This article is for general education and informational purposes only. It is not investment, legal or tax advice. Crypto assets and derivatives involve substantial risk.