Indicators & Calculations · Lesson 2
RSI
Is the move running out of steam?
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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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Next lesson: MACD
Educational information only - not financial advice.