What It Is
RSI (Relative Strength Index) is a momentum oscillator that measures the speed and magnitude of price changes. Developed by J. Welles Wilder in 1978, it oscillates between 0 and 100, helping identify overbought and oversold conditions.
Key insight: RSI doesn't just show overbought/oversold - it measures the internal strength of price movement. A rising RSI means bullish momentum is accelerating; a falling RSI means momentum is weakening, regardless of price direction.
The indicator is bounded (0-100), making it easy to compare momentum across different assets and timeframes. This normalization is what makes RSI so universally applicable.
Trading Strategies
Trading Strategies Hidden Divergence Trading Trend continuation signals using hidden divergences...
How RSI behavior changes in bull vs bear markets...
Divergence setups, range shifts, and multi-timeframe RSI.
RSI above 70 in an uptrend isn't a sell signal — it's a sign of strength. The biggest mistake traders make is shorting overbought RSI in a bull market. Use RSI for divergence, not for contrarian entries against the trend.
Continue through technical indicators
Compare this reference with related structures and readings before applying it to a live chart.