RSI (Relative Strength Index) is a technical indicator that measures the strength and speed of price movements of an asset. On a scale from 0 to 100, it shows whether the asset is overbought or oversold. A value above 70 typically signals overbought conditions and a potential price correction or decline, while a value below 30 indicates oversold conditions and a potential price increase. RSI helps traders identify optimal entry or exit points.
Why use the RSI indicator?
For entering a position based on the RSI indicator, it is advisable to buy when the RSI is at low levels, signaling that the stock is oversold and may soon rebound upwards. Conversely, when the RSI is around 80, the indicator suggests the stock is overbought, which often precedes a likely price decline. This indicator helps identify optimal moments for buying and selling within swing trading.
Answers and Score
| ANSWER | SCORE | PRIORITY |
| Below 20 | 10 | 1,4 |
| Between 20 – 50 | 8 | 1,4 |
| Between 50 – 80 | 6 | 1,4 |
| Above 80 | 3 | 1,4 |
Where to find the RSI indicator?
You can find the value, for example, on finviz.com.
This question is part of this analyzer.
| Decameron Stock Analyzer – Swing trading, v.1.0 | open analyzer |
Do you want to know more?
RSI Indicator and Its Implementation in Swing Trading Strategy
 is a technical indicator that measures the strength and speed of price movements of an asset. On a scale from 0 to 100, it shows whether the asset is overbought or oversold.){kind=link}