Relative Strength Index (RSI)

 Relative Strength Index (RSI) is a popular technical analysis indicator used to measure the momentum of a financial asset, such as a stock or currency. The RSI compares the average gains and losses over a specific period of ti
me, typically 14 days, and provides a score between 0 and 100.

Here's how the RSI works:

• When the RSI score is above 70, it is considered overbought, indicating that the asset may be overvalued and due for a price correction or pullback.
• When the RSI score is below 30, it is considered oversold, indicating that the asset may be undervalued and due for a price rebound or rally.
• When the RSI score is between 30 and 70, it is considered neutral, indicating that there may not be a significant price trend in either direction.

Traders often use the RSI as a signal to buy or sell an asset. For example, if an asset's RSI score is above 70, it may be a signal to sell the asset, while an RSI score below 30 may be a signal to buy the asset. Traders may also use the RSI to confirm other technical indicators or to identify potential trend reversals.