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Indicators & Calculations · Lesson 2

RSI

Is the move running out of steam?

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RSI

In this lesson

Understand what RSI measures, how it's calculated, and why overbought does not mean 'sell'.

Key takeaways

  • RSI compares the size of recent gains with recent losses on a 0–100 scale (usually 14 periods).
  • Above 70 = overbought (rose fast); below 30 = oversold (fell fast).
  • In strong trends RSI can stay overbought or oversold for a long time.
  • Use RSI with trend and support/resistance, not alone.
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