What is the Relative Strength Index indicator?

What is the Relative Strength Index indicator?

The Relative Strength Index (RSI) is a momentum indicator that measures the speed and magnitude of recent price movements.

It helps identify whether a symbol may be overbought or oversold.

What does the Relative Strength Index indicate?

RSI values range between 0 and 100.

  • Values above 70 may indicate that the asset is overbought.
  • Values below 30 may indicate that the asset is oversold.

This helps traders evaluate momentum and potential reversal points.

How it is used in indicator triggers

RSI can be used in indicator triggers to create conditions based on momentum levels.

  • RSI crossing above or below a defined value
  • RSI compared with another indicator

This helps automated strategies detect momentum changes in the market.

Note:
  • RSI measures momentum rather than price direction.
  • Overbought or oversold conditions do not always mean an immediate reversal.