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What RSI tells you

A 0-to-100 gauge of whether a stock has run hot or cold.

RSI stands for Relative Strength Index. It is a momentum reading from 0 to 100 that tracks how fast and how far a price has moved lately.

A high reading (often above 70) suggests the stock may be overbought — it has climbed fast and could be due for a pause. A low reading (often below 30) suggests it may be oversold.

Read it with care

Overbought does not mean "sell now", and oversold does not mean "buy now". Strong stocks can stay overbought for weeks. RSI is a clue about momentum, not a command.

Used alongside trend and volume, it helps answer one question: is this move stretched, or does it still have room?

The takeaway

RSI flags when a move looks stretched — a clue about momentum, not a trade order.

Next: Why position size matters more than picksGlossary

Not financial advice · for research and educational purposes only. Nothing here is a recommendation to buy or sell any security. All investing carries risk of loss.