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  1. Home
  2. /Glossary
  3. /RSI (Relative Strength Index)
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trading

RSI (Relative Strength Index)

A momentum oscillator that measures the speed and size of recent price changes on a scale from 0 to 100.

Definition

A momentum oscillator that measures the speed and size of recent price changes on a scale from 0 to 100. Readings above 70 suggest an asset is overbought and might pull back. Below 30 suggests it's oversold and could bounce. It's one of the first indicators every trader learns.

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Related Terms

Technical Analysis

Studying price charts and patterns to predict future movements.

Bollinger Bands

A technical analysis tool that plots two standard deviation bands above and below a moving average.

MACD (Moving Average Convergence Divergence)

A momentum indicator that shows the relationship between two moving averages of a price.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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