Relative strength index

The Relative Strength Index (RSI) is a tool used by investors to measure the speed (or velocity) and change of price movements. It is used to determine when an asset or security is overbought (too expensive) or oversold (too cheap). It looks at the average price gains and losses of a security or asset over a specific period of time, usually 14 days. It calculates a value between 0-100 that signals when an asset is overbought or oversold. A value over 70 suggests it is overbought and under 30 suggests it is oversold.