RSI (Relative Strength Index) is a momentum oscillator developed by J. Welles Wilder Jr. in 1978. Measures speed and magnitude of price changes on a 0-100 scale.
📊 How to Read RSI
- RSI > 70: Overbought — potential reversal down
- RSI < 30: Oversold — potential reversal up
- RSI = 50: Neutral — no clear signal
- RSI Divergence: Price makes new high but RSI doesn't → strong reversal signal
🎯 Trading Strategies
- Buy when RSI < 30 and turns up
- Sell when RSI > 70 and turns down
- Combine with MACD, Bollinger Bands for accuracy
- RSI 14 most popular; RSI 9 for short-term swing trading