What does RSI (Relative Strength Index) mean?

RSI is a momentum indicator from 0-100; readings above 70 often signal a stock is overbought, and below 30 often signal it's oversold.

RSI is a momentum oscillator from 0 to 100. Above 70 = often overbought (a pullback may be due). Below 30 = often oversold (a bounce may be due). It doesn't predict price — it measures the speed of recent moves.

RSI (Relative Strength Index) example

A stock up 12 of the last 14 days might show an RSI of 78 — above 70, the usual "overbought" line. After a long slide it might read 25, below the "oversold" line of 30.

Common beginner mistake

Selling just because RSI is above 70. In a strong uptrend RSI can stay overbought for weeks while the price keeps climbing.