Indicator · 1 min read
RSI (Relative Strength)
Understand the oversold and overbought indicator, and what the app does with it.
The essentials
The RSI (Relative Strength Index) is an oscillator bounded between 0 and 100 that measures the speed and magnitude of recent price changes.
- Below 30: the asset is considered oversold (potential for a bullish bounce).
- Above 70: overbought (potential for a bearish pullback).
- Between 30 and 70: neutral zone, no strong signal.
Interactive lab
Go back in time and watch the RSI react
Drag your finger or mouse across the chart. Then change the period to see the RSI become jumpier or calmer.
- Price
- RSI
RSI
13
Zone
Oversold
Extreme zone: the RSI votes in the confluence score. The further it goes past the threshold, the more its vote counts.
Simulated data. The calculations are the app's own: same formulas, same thresholds.
Check what you learned
A crypto's RSI is at 22. What does that mean?
Going further: divergences
A divergence appears when price makes a new low while the RSI makes a higher low (bullish divergence), or the reverse. It signals a possible exhaustion of the trend.
Expert: period and limits in a trend
The 14-period default is a standard; shortening it makes the RSI more reactive but noisier. In a strong trend, the RSI can stay pinned in an extreme zone for a long time, making the 30/70 thresholds misleading.