Indicators

RSI (Relative Strength Index)

Also called: relative strength index

A momentum oscillator from 0–100 that measures the speed of recent gains vs losses — above 70 is often 'overbought', below 30 'oversold'.

70 overbought30 oversold
Schematic of a rsi (relative strength index) — illustrative geometry, not a live price chart.

Developed by J. Welles Wilder, RSI compares the average size of up moves to down moves over a lookback (commonly 14 days). High readings mean price has risen quickly; low readings mean it has fallen quickly.

RSI is best used for context, not as a standalone signal: 'overbought' can stay overbought in a strong trend. Divergence — price making a new high while RSI doesn't — is a popular warning of fading momentum.

On StockSetups

RSI is one of 30+ indicators on every StockSetups signal; you can screen and sort the board by it, and the dossier also flags RSI/MACD momentum divergence automatically.

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Frequently asked

What is a good RSI level to buy?

There's no universal level — many traders watch for RSI turning up from oversold (below 30) in an uptrend, but RSI is context, not a buy button. It works best combined with trend and structure.

Related terms

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