What it means
The Relative Strength Index measures the speed and size of recent price movements. It compares recent upward movement with recent downward movement over a selected period and displays the result as a line between 0 and 100.
Why it matters in live markets
RSI helps traders observe momentum conditions. It is often used to understand whether recent price movement has been strong, stretched, or changing. It should be treated as context rather than a standalone signal.
Key points
- RSI stands for Relative Strength Index.
- It is a momentum oscillator.
- It moves between 0 and 100.
- Readings near 70 are often described as overbought.
- Readings near 30 are often described as oversold.
- RSI does not predict future price movement.
Example
If price has recently risen strongly compared with recent declines, RSI may move higher. If recent declines have been stronger than recent rises, RSI may move lower.
Related glossary terms
Momentum, Oscillator, Overbought, Oversold, Divergence, Volatility
Where you will see it
You will usually see RSI discussed in indicator education, technical analysis guides, chart tutorials, MT5 platform education, and momentum-related market commentary.