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.