An oscillator that quantifies overbought and oversold conditions. A go-to indicator for objectively measuring market momentum.
The RSI (Relative Strength Index) is an oscillator developed by J. Welles Wilder in 1978. It compares the magnitude of recent gains to recent losses over a specified period, expressing the result as a value between 0 and 100.
A high RSI indicates strong buying momentum; a low RSI indicates strong selling momentum. Conventionally, readings above 70 suggest "overbought" conditions, while readings below 30 suggest "oversold" conditions.
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