← All indicators
MomentumBeginner
RSI — Relative Strength Index
0–100 oscillator comparing recent gains to losses. Measures momentum, not an “absolute top”.
Formula (conceptual view)
RSI = 100 − 100 / (1 + RS), where RS = average gain / average loss over the period (classic: 14).
Common parameters: Period 14 · zones 30 / 70 (adjustable)
How to read
- ▸High values show recent buying pressure; low values show recent selling pressure.
- ▸In strong trends RSI can stay “overbought/oversold” for a long time — not an auto reverse order.
- ▸Divergences (price new high, RSI not) hint at fading momentum, not certain reversal.
- ▸Combine with structure: extreme RSI + rejection at resistance beats RSI alone.
Common mistakes
- ✕ Selling every RSI > 70 in an impulsive uptrend.
- ✕ Changing the period every trade to fit the past.
- ✕ Ignoring RSI timeframe versus the trade timeframe.
Works well with
Averages as trend filterSupport/resistanceMACD