The Relative Strength Index (RSI) is a momentum indicator used in technical analysis to measure the speed and strength of recent price movements on a scale from 0 to 100.
It was developed by J. Welles Wilder and introduced in 1978. The standard period is 14 time intervals.
Values above 70 are typically considered overbought and may indicate a potential correction, while values below 30 are considered oversold and may signal a possible rebound.
The RSI can also be used to identify divergences—for example, when price makes new highs but RSI does not, indicating weakening momentum.
It is rarely used in isolation and is often combined with trend analysis, price patterns, or other indicators. The RSI is one of the most widely used indicators in trading.
