Relative Strength Index

The relative strength index (RSI) is a momentum indicator for technical analysis. It measures the movement in the strength of prices and evaluates overbought and oversold conditions in the price of a financial instrument. It is displayed as a price oscillator, reading from 0 to 100.

Values of 70 or above suggest overbought or overvalued and hence selling whereas values around 30 or below suggest oversold or undervaluation hence buying.