The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify overbought or oversold conditions in a market.
RSI can be used to spot potential trend reversals, confirm trends, and identify overbought or oversold conditions. Traders often look for RSI values above 70 (overbought) or below 30 (oversold) to make trading decisions.
Two of the most effective RSI strategies include the RSI divergence strategy, which spots potential reversals, and the RSI overbought/oversold strategy, which identifies entry and exit points based on extreme RSI readings.
