RSI stands for Relative Strength Index, which is a technical indicator used in trading analysis to measure the strength of a security’s price action.
The RSI is typically plotted on a chart with values ranging from 0 to 100. The higher the RSI value, the more overbought a security is, indicating that it may be due for a price correction. Conversely, the lower the RSI value, the more oversold a security is, indicating that it may be due for a price rebound.
Traders often use the RSI to identify potential entry and exit points for trades, as well as to confirm the strength of trends and to spot potential trend reversals.
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