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What is RSI (Relative Strength Index)?
RSI is a momentum indicator measuring speed and magnitude of price changes on a scale of 0-100. Above 70 = overbought (potential sell signal), below 30 = oversold (potential buy signal).
Full Explanation
The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder. It measures the speed and magnitude of recent price changes on a 0-100 scale. RSI above 70 suggests the asset is overbought (may be due for a pullback); below 30 suggests oversold (may be due for a bounce). The standard period is 14. RSI divergence (price makes new high but RSI doesn't) is a powerful reversal signal. RSI works best in ranging markets; in strong trends, it can stay overbought/oversold for extended periods.
Example
Bitcoin's RSI drops to 25 after a sharp crash — this oversold reading has historically preceded bounces. Use Fedha Academy's Token Screener to filter coins by RSI.
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Last updated: 2026-03-21
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