What is the Relative Strength Index (RSI) Indicator?
The relative strength index (RSI) is a technical analysis indicator commonly used in crypto trading for estimating Market Momentum. It evaluates overvalued or undervalued conditions in the price of crypto assets based on the speed and magnitude of their recent price changes. Created by J. Welles Wilder Jr, the indicator is presented as an oscillator (a line graph) on a scale of zero to 100. Like many other technical indicators, this tool was also introduced in the book “New Concepts in Technical Trading Systems”, published in 1978.
RSI can also signal a reversal in trend or a corrective pullback in price. Buying and selling signals can be obtained from it. A reading of 70 or higher on the RSI indicates overbought conditions. .
