7.17 Lessons learnt
- The relative strength index is a momentum indicator measuring the magnitude of recent price changes to determine overbought or oversold conditions in the price of a stock or other asset.
- The RSI moves within a bandwith of 0 to 100.
- Values above 70 indicate overbought of overvalued and may indicate a trend reversal or pullback.
- Values below 30 indicate an oversold or undervalued condition.