What is RSI (Relative Strength Index)?
A 0β100 momentum oscillator comparing the size of recent gains against recent losses, typically over 14 days. It measures how fast and one-sided recent price movement has been.
Formula
How to Interpret
Readings above 70 are conventionally overbought and below 30 oversold. A cross back through the 50 midline suggests momentum changing sides. Divergence β price making a new high while RSI doesn't β is a classic early warning. In strong trends RSI can stay pinned at extremes for weeks; overbought is not a sell signal by itself.
Typical Ranges
70+ overbought zone, 30β oversold zone, 50 = neutral midline. Thresholds are conventions, not laws β high-volatility assets (crypto) routinely exceed them for extended stretches.
Find Stocks Using This Signal
Screen US and Indian stocks by RSI in the Technical Screener.