Trading Glossary
Relative Strength Index (RSI)
A momentum oscillator developed by Welles Wilder that measures the day-to-day up and down closes over a certain period.
The RSI ranges from 0 to 100; typical overbought/oversold levels are 70/30, that is, when the RSI moves above 70 the market is overbought and when the oscillator falls below 30 the market is oversold. Such levels should be used with caution; markets can remain overbought or oversold for extended periods of time in trending markets. This indicator has no relation to relative strength (RS).
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