What it means
The Relative Strength Index measures the magnitude of recent price changes to assess overbought or oversold conditions. Calculated over 14 periods by default. Above 70 traditionally signals overbought; below 30 signals oversold.
Why it matters
RSI is one of the most-used technical indicators on Earth. It's not predictive on its own, but combined with price action and divergence, it's a useful filter for entry timing.
How to use it
Look for divergences (price makes new high; RSI doesn't) as the highest-signal use. Avoid mechanical 'buy <30, sell >70' - strong trends can stay overbought or oversold for weeks.
Take it further
Want a worked example or a deeper dive? Ask Rocky how this concept applies to your specific watchlist or trade idea.
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