The Relative Strength Index, or RSI, is a momentum indicator that compares the size of recent gains with recent losses over a chosen period. It is displayed on a scale from 0 to 100.
Typical interpretation
Readings above 70 are often described as overbought and readings below 30 as oversold. These labels are not automatic buy or sell signals; strong trends can remain elevated or depressed for a long time.
Better practice
Use RSI with price structure, trend, and a defined risk plan. Test the settings and interpretation on the market and time frame you actually trade.