Description
The Relative Strength Indicator (RSI) is a popular momentum oscillator used in trading and technical analysis to assess the speed and change of price movements of a financial asset, such as a stock or currency pair. It measures the relative strength of an asset’s recent price gains compared to its recent price losses over a specified period, typically 14 periods.
The RSI provides a numerical value that ranges from 0 to 100, with readings above 70 generally considered overbought (indicating that the asset may be due for a price correction or reversal), and readings below 30 generally considered oversold (suggesting that the asset may be due for a price rebound or reversal).
Traders and investors use the RSI to identify potential buy or sell signals. For example, when the RSI rises above 70, it may indicate that the asset is overbought and could present a potential sell opportunity, while a drop below 30 may suggest the asset is oversold, signalling a potential buy opportunity.

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