The Relative Strength Index (RSI) is a momentum indicator scaled from 0 to 100. Readings above 70 suggest a market may be overbought and readings below 30 oversold, hinting at possible reversals. Traders use it alongside trend analysis rather than on its own.
Forex Term
RSI
A momentum indicator showing if a market is overbought or oversold.
Example
An RSI reading above 70 warns that a strong rally may be overextended.
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Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.