Relative Strength Index (RSI)
Quick Definition
A momentum indicator measuring speed and magnitude of price changes on a 0-100 scale. Above 70 is overbought, below 30 is oversold. One of the most popular indicators.
Related Terms
Momentum Signal
An early indicator that an asset is gaining attention and price strength before it becomes widely discussed.
Oversold
When an asset has fallen too fast and may be due for a bounce. Often measured by RSI below 30. Can signal a buying opportunity, but falling knives can keep falling.
Overbought
When an asset has risen too fast and may be due for a pullback. Often measured by RSI above 70. Doesn't mean sell immediately—strong trends stay overbought for weeks.
See Relative Strength Index (RSI) in Action
Apply your knowledge with real-time market signals on Banana Farmer.
View Top Signals