Indicators

RSI: Momentum & Overbought/Oversold

5 min readTrading Reference Guide

What is RSI?

Relative Strength Index (RSI) measures momentum on a scale of 0-100. It shows whether price is moving up or down strongly, and when it's overextended (overbought/oversold).

OVERBOUGHT(70-100)NEUTRAL(30-70)OVERSOLD(0-30)70300100

RSI Levels

0-30 = Oversold (sellers exhausted, potential reversal UP)

30-70 = Neutral (normal range)

70-100 = Overbought (buyers exhausted, potential reversal DOWN)