what is rsi index

The RSI index, or Relative Strength Index, is a widely technical indicator in trading that measures. The magnitude of recent price changes to evaluate overbought or oversold conditions in an asset. Developed by J. Welles Wilder, the RSI oscillates between 0 and 100 and is typically. Displayed as a line graph below the price chart. Traders often  the RSI to identify potential trend reversals and gauge the strength of a trend. When the RSI reaches values above 70, it suggests that the asset may be overbought. Indicating a potential reversal to the downside. Conversely, an RSI below 30 indicates potential oversold conditions, suggesting a possible upward reversal. By incorporating the RSI into their trading strategies, investors can make more informed decisions and better time their trades to capitalize on market opportunities.