Relative Strength Index (RSI)

RSI is a momentum indicator employed in technical analysis to evaluate the effects of recent price fluctuations and identify potential overbought or oversold conditions of an asset. Visualized as an oscillator in the form of a line graph, the RSI ranges between 0 and 100. Typically, an RSI reading above 70 indicates overbought or potentially overvalued conditions, while a reading below 30 suggests oversold or potentially undervalued conditions. However, it is important to note that the RSI, like other technical indicators, should be considered alongside other data points when analyzing current market conditions.