Cluenex
Log inStart free
Glossary · Pro tools

RSI (Relative Strength Index)

A 0 to 100 gauge of how hard a stock has been bought or sold over the last 14 days.

Why it matters

RSI compares the size of recent up days with recent down days. Very high readings mean buyers have pushed hard; very low readings mean sellers have. Traders use it to spot moves that may be stretched.

How to read it

Above 70 is called overbought, below 30 oversold. Strong stocks can stay above 70 for months, so treat it as a sign of stretch, not a sell signal on its own.

Also called: relative strength index

Related

MACDMomentum shown as the gap between a fast (12-day) and a slow (26-day) average of the price.Bollinger BandsA band two standard deviations above and below the 20-day average price.BacktestTesting a trading rule on past prices to see how it would have done.

In the Cluenex app, this explanation opens next to every rsi (relative strength index) figure, with the live reading for the stock you are looking at. Open it in Cluenex