Relative Strength Index
a.k.a. RSI
A popular oscillator from 0 to 100 that measures how strong recent gains are compared with recent losses.
The Relative Strength Index (RSI), created by J. Welles Wilder, compares the size of recent up moves with recent down moves, usually over 14 periods, and squashes the result into a scale from 0 to 100.
Readings above 70 are traditionally called overbought (price has run up hard); below 30, oversold. Traders also watch for divergence: price makes a new high, RSI does not, hinting the push is tiring. In strong trends, RSI can stay overbought or oversold for a long time, so it is a gauge, not a trigger.
Selling just because RSI went above 70. In a powerful uptrend, it can sit up there while price keeps climbing.
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