The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of recent price moves on a 0–100 scale. Developed by J. Welles Wilder, it is usually read against two thresholds: above 70 is considered overbought, below 30 oversold. The midline at 50 acts as a simple trend bias.
How traders use it
- Spot overbought and oversold extremes as potential reversal zones.
- Use the 50 line to gauge whether momentum favours bulls or bears.
- Watch for divergence — price making a new high while RSI does not — as an early warning.
See it in dtcharts
Add RSI from the indicators panel in the dtcharts terminal, or grab ready-to-paste code for MetaTrader, TradeStation and TradingView in the RSI Traders' Tips article.