Tool
RSI
market.rsi
Inputs
No typed inputs.
Outputs
A 0–100 momentum line; above 70 is overbought, below 30 oversold.
RSI (Relative Strength Index) is a momentum oscillator that measures how fast and how far price has moved recently, on a 0–100 scale. Readings above 70 are often called 'overbought' and below 30 'oversold'.
How it works
Over a rolling window (the period, default 14 bars) RSI compares the average size of up-moves to the average size of down-moves, then maps the ratio onto 0–100. A run of strong up-bars pushes it toward 100; a run of down-bars pushes it toward 0.
Modes
Compute RSI from each bar's open price.
When to use: Use open when that price best reflects the move you trade.
Compute RSI from each bar's high price.
When to use: Use high when that price best reflects the move you trade.
Compute RSI from each bar's low price.
When to use: Use low when that price best reflects the move you trade.
Compute RSI from each bar's close price.
When to use: Use close when that price best reflects the move you trade.
Configuration
How many bars to average over. Larger = smoother and slower; smaller = faster and noisier. 14 is the classic default.
Which price each bar contributes (close is the usual choice).
Connects to
Examples
- Filter: only take long signals when RSI is below 30 (a dip in an uptrend).
- Cross RSI with a 50 level to gauge momentum direction.
Common mistakes
- Treating 70/30 as automatic sell/buy signals — in a strong trend RSI can stay overbought or oversold for a long time.
- Using too short a period, which makes RSI whippy and noisy.