RSI
Relative Strength Index. A number from 0 to 100 that compares recent upward and downward price changes to help describe momentum.
RSI stands for Relative Strength Index. It is a momentum gauge that moves between 0 and 100 and compares the size of recent gains with recent losses, usually over the last 14 candles.
Readings above 70 are often called overbought and below 30 oversold, but those words are misleading for beginners. In a strong trend, RSI can stay high or low for a long time while price keeps going.
RSI is most useful for spotting divergence: price makes a new high, but RSI makes a lower high, a sign the push behind the move is fading. Treat it as one piece of evidence, never a buy or sell signal on its own.
Example: price rises to a new high of $60, but RSI peaks at 62 after peaking at 75 on the previous high. That gap between price and RSI is a divergence worth noting.
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Educational definition. Not financial advice; no real-money execution.