Relative strength index
The relative strength index, or RSI, is a momentum oscillator that compares smoothed gains with smoothed losses over a chosen period, producing values from 0 to 100. Readings above 70 or below 30 are commonly labelled overbought or oversold, but neither condition necessarily implies an imminent reversal.
In a hypothetical RSI calculation, smoothed average gains are 2 and smoothed average losses are 1. The resulting RSI is approximately 66.7, reflecting stronger gains over the measured period.
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