Indicators and tools
What is RSI and how do you read it?
RSI, the Relative Strength Index, is a line from 0 to 100 that shows how strong recent up moves were compared with recent down moves.
Above 70 is often called overbought. Below 30 is often called oversold. The usual setting looks at the last 14 candles.
The big beginner mistake: overbought is not a sell button. In a strong uptrend, RSI can stay above 70 for a long time while price keeps rising.
RSI is more useful as a clue about momentum, especially when it disagrees with price. That disagreement is called divergence.
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This is taught in Grade 6: Indicator Lab.
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Reviewed 2026-10-04. Education only, not financial advice. Trading involves risk of loss.