Relative Strength Index (RSI)

An indicator used to determine market movements and identify pricing conditions.

Relative Strength Index (RSI) is a technical indicator that is used to measure the movements of asset prices, and determine whether market conditions are overbought or oversold. Market analysts use this index along with a number of others to observe price movements graphically, after which they can now decide to measure market conditions on a scale of 0 to 100. The closer to 0 the conditions are, the more likely they are oversold. By the same token, the closer to 100 the conditions are, the more likely they are to be overbought.

RSI is a simple index and so it is very popular. Moreover, even though it is not the most practical technical indicator, its accuracy can be boosted when combined with others.