Relative Strength Index
Strategy guide
Last updated
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Strategy guide
Last updated
Was this helpful?
The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of an asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.
Traditional interpretation and usage of the RSI is that values of 70 or above indicate that an asset is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price whereas an RSI reading of 30 or below indicates an oversold or undervalued condition.
A buy signal is produced when the RSI is below the minimum RSI threshold. A sell signal is produced when the indicator is above the maximum RSI threshold.
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