Relative Strength Index (RSI)

What is the relative strength index (RSI)?

The RSI, or relative strength index, is a momentum oscillator that will measure the degree of upward pressure against downward pressure. At this point, the scale is then normalized and converted into a 1-100 scale.

An RSI registers above 70, it's generally considered to be a sell signal. This is when a currency is considered to be "overbought". When an RSI goes below 30, the opposite occurs, and the stock is said to be "oversold" and you can consider this a buying signal.