RSI

Relative Strength Index: a 0–100 oscillator comparing recent gains with recent losses.

Formula

RSI = 100 − 100 ÷ (1 + Average gain ÷ Average loss)

How to read it

Above 70 is conventionally overbought, below 30 oversold — in a strong trend it can stay there for weeks.

How to use it

Spot stretched moves and momentum divergences — price making a new high while RSI does not.

Limitations

In strong trends it stays overbought or oversold for weeks.

In Kereon

Investing · price record. 14 sessions, Wilder's smoothing.

Charts · Superchart. Wilder-smoothed over 14 bars; levels at 70 and 30. A window with no losses reads 100.

Also called: rsi, rsi 14, rsi14.

Related terms

The whole glossary · Investing tools