RSI: Identifying Overbought and Oversold Conditions

Learn to use the Relative Strength Index (RSI) to gauge momentum, spot divergences, and identify potential reversal points before they happen.

Key Takeaways

• 1.RSI ranges from 0 to 100; above 70 = overbought, below 30 = oversold
• 2.Divergence between RSI and price often precedes reversals
• 3.RSI can stay in extreme territory during strong trends
• 4.Centerline (50) crossings indicate momentum shifts