Homonym: RSI (Repetitive)
The Relative Strength Index, or RSI, is a popular technical analysis tool used in financial markets to measure the speed and change of price movements. It ranges from 0 to 100 and helps traders identify overbought or oversold conditions in a security. Typically, an RSI above 70 indicates that a security may be overbought, while an RSI below 30 suggests it may be oversold.
Developed by J. Welles Wilder Jr., the RSI is calculated using the average gains and losses over a specified period, usually 14 days. This momentum oscillator can assist traders in making informed decisions about buying or selling assets based on market trends.