RSI (Relative Strength Index)
0-100 oscillator showing oversold (<30) or overbought (>70).
RSI(14): oversold <30, overbought >70. Strong trends keep RSI extreme. Best signal: divergence (price new high, RSI lower = warning).
In plain words
Indicator measuring whether recent price action was mostly up or down. Above 70 means short-term overbought (possible correction). Below 30 means oversold (possible bounce). In strong trends RSI can sit at extremes for long, so it's not enough alone. The best signal is divergence with price.
Example
BTC Jan 2024 (pre-Golden Cross): RSI 32 oversold. +200% in 3 months. BTC Mar 2024 ATH: RSI 78 + divergence = top signal. -25% in 4 weeks.
Also known as: RSI, relative strength index