RSI indicator (Relative Strength Index)
The Relative Strength Index (RSI) or Relative Strength Index is a normalized oscillator. The developer and promoter of this indicator is J. Welles Wilder.
The RSI indicator shows the position of current prices relative to the previous period. It worked well for trading in a side trend (flat), showing how much the price deviated from its average values.
The RSI indicator is built in a separate window under the chart of the selected asset. The trading signals of the indicator are generated using the indicated levels: 30, 50 and 70. The area above 70 is called the overbought zone, where sell signals appear. The area below 30 is called the oversold zone and considers buy signals. If there is a pronounced trend, it is recommended to take RSI signals only in the direction of the current trend.