Momentum

Relative Strength Index

RSI

Compares the average size of recent gains to recent losses using Wilder's smoothing, producing a 0–100 oscillator. Readings above 70 suggest overbought conditions; below 30 suggests oversold.

Tips

Divergence between RSI and price often precedes reversals; bearish divergence at highs and bullish divergence at lows are high-probability signals

In strong trends RSI can stay overbought or oversold for extended periods; use 80/20 thresholds instead of 70/30 during powerful moves

Parameters

Period

2 - 100