The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset.
The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.
- Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price.
- An RSI reading of 30 or below indicates an oversold or undervalued condition.
- Pre-configured for an interval of 14 periods on the candle of 1h.
- For an additional confirmation, combine it with another indicator.