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Indicator
oscillator
RSI (Relative Strength Index)
FiabilitΓ© :
β
β
β
β
β
Oscillator from 0 to 100 measuring momentum strength. Overbought above 70, oversold below 30.
In detail
Created by J. Welles Wilder in 1978. RSI 14 (period 14) is the standard setting. Widely used to detect divergences between price and momentum, sign of potential reversal.
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How to trade
Buy oversold confirmed by bullish breakout. Look for divergences (price makes new high but RSI does not = potential reversal).
#oscillator
#momentum
#classic