Charts & technicals

What is RSI (Relative Strength Index)?

Also called: Relative strength index

Hinglish mein padhein: RSI kya hota hai?

RSI is a momentum oscillator from 0 to 100 that compares recent gains with recent losses, usually over 14 periods.

Readings above 70 are called overbought and below 30 oversold. In strong trends RSI can stay overbought or oversold for a long time, so these are not automatic sell or buy signals.

Divergence — price making a new high while RSI makes a lower high — can warn that momentum is fading.

Related terms

MomentumMomentum is the tendency of stocks that have risen strongly to keep rising for a while (and fallers to keep falling).
MACDMACD is the difference between the 12-day and 26-day EMAs, with a 9-day EMA 'signal line'. Crossovers and the histogram show momentum shifts.
Overbought and oversoldOverbought means a price has risen fast and may be due for a pause; oversold means it has fallen fast and may bounce. Both are measured with oscillators like RSI.