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Building up · 4 min read

RSI: is the move getting tired?

The relative strength index compares the size of recent gains with recent losses and squeezes the answer into a number between 0 and 100.

Above 70 is called overbought: buyers have been in charge and the move may need a rest. Below 30 is oversold: sellers have dominated.

It is not a signal to buy or sell. Strong stocks can stay overbought for months. RSI describes intensity, not value.

Remember

RSI measures how hard the crowd has been pushing — not whether they're right.

See a real example

Compare Nvidia, Tesla and Coca-Cola

A hot chip stock, a volatile one and a slow one.

What this shows

Volatile names hit the extremes constantly. Steady names rarely do. Read RSI against the stock's own personality.

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