RSI

What is RSI?

RSI (Relative Strength Index) is a momentum oscillator that measures the speed and magnitude of recent price changes on a scale of 0 to 100. Developed by J. Welles Wilder, it uses a default period of 14.

Key levels

• Above 70: overbought (may pull back)
• Below 30: oversold (may bounce)
• 50 line: centerline, acts as trend filter

RSI divergence

When price makes a new high but RSI makes a lower high, it's a bearish divergence: momentum is fading. The opposite (price makes new low, RSI makes higher low) is a bullish divergence.