RSI technical momentum indicator

Relative Strength Index - RSI
What does this mean?
What Does Relative Strength Index - RSI Mean?

A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought oversold and conditions of the asset. It is calculated using the following formula:

RSI = 100-100 / (1 + * RS)

* Where RS = Average of x "above closes / Average of x days down closes days.

Relative Strength Index (RSI)


As you can see from the chart, the RSI ranges from 0 to 100. Leverage is considered to be overbought once the RSI approaches the 70 level, which means that you may be getting overvalued and is a good candidate for withdrawal. Also, if the RSI approaches 30, it is an indication that the funds may be getting oversold and therefore likely to become undervalued.