Technical Indicators

A Complete Guide to Understanding the RSI Indicator

Nishant MendheNovember 2, 2025
A Complete Guide to Understanding the RSI Indicator

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100.


Overbought and Oversold Levels

Traditionally, an asset is considered overbought when the RSI is above 70 and oversold when it is below 30.


However, in strong trends, these levels can be misleading. A strong uptrend might have an RSI that stays above 70 for extended periods.


RSI Divergence

RSI divergence occurs when price moves in the opposite direction of the RSI. This often signals a potential reversal in the market.


Learning to correctly identify and trade RSI divergence can be a powerful addition to your trading toolkit.

#RSI#Technical Indicators#Momentum Trading
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