The Relative Strength Index (RSI) is a popular technical analysis indicator that is used to measure the strength of a security's price action. It is a momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine whether a security is overbought or oversold.The RSI is calculated using the following formula: -RSI = 100 - (100 / (1 + (Average of Upward Price Changes / Average of Downward Price Changes)))The RSI ranges from 0 to 100, with high values (above 70) indicating that a security is overbought, and low values (below 30) indicating that it is oversold. Some traders use the RSI as a trade entry and exit signal, while others use it as a trend-following indicator to identify trends that are gaining or losing momentum.It is important to note that the RSI is a lagging indicator, meaning that it is based on past price data and may not always accurately predict future price movements. It is also prone to giving false signals, especially in range-bound markets. As such, it should be used in conjunction with other technical analysis tools and market analysis techniques.
