Technical Analysis

Relative strength index (RSI)

A momentum oscillator comparing recent gains and losses over a chosen lookback period.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

An RSI reading above a chosen threshold describes recent relative gains and losses under a formula; it does not guarantee a reversal or identify fair value.

IMPORTANT DISTINCTION

An overbought label is not a guaranteed sell signal; strong trends can retain extreme readings.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. FINRA — investing insights

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