RSI

The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder that measures the speed and magnitude of recent price changes to evaluate overbought or oversold conditions. RSI values range from 0 to 100, with readings above 70 indicating overbought conditions and readings below 30 suggesting oversold territory. Traders use RSI to identify potential reversal zones, confirm trend strength, and spot divergences — situations where the indicator moves opposite to price, often signaling an impending trend change. The standard RSI period is 14, though many traders adjust this to match their timeframe.