Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a popular technical indicator used by traders to assess whether a stock or asset is overbought or oversold. It measures the speed and magnitude of recent price changes to determine if an asset is potentially due for a price correction. RSI values range from 0 to 100; typically, a reading above 70 suggests overbought conditions (possible reversal downward), while below 30 indicates oversold conditions (possible reversal upward). RSI helps traders identify potential entry or exit points by analyzing momentum, but it should be used alongside other indicators for better decision-making.