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What RSI means (and what it does not)
A beginner-friendly explanation of the 14-day Relative Strength Index used on our stock pages.
The short version
RSI (Relative Strength Index) is a momentum gauge that usually runs from 0 to 100. The common 14-day version asks: over the last two weeks of trading, how strong have up days been compared with down days?
- Readings near 70 or above are often called overbought — recent buying has been intense.
- Readings near 30 or below are often called oversold — recent selling has been intense.
- Readings in the middle say momentum is neither extreme.
What overbought and oversold really mean
“Overbought” does not mean “must fall tomorrow.” Strong trends can stay overbought for a long time while price keeps rising. “Oversold” does not mean “must bounce tomorrow.” Weak names can stay oversold while price keeps falling. Extremes are prompts to look closer — at trend, volume, news and structure — not automatic buy or sell signals.
How we use RSI on this site
On each stock page, RSI is one input inside the technical section. We describe whether the reading looks stretched, recovering or calm, and we put it next to moving averages and MACD so you can see whether momentum agrees with the broader trend. RSI never decides the composite verdict alone.
A simple practice habit
When you open a page, note the RSI number and the verdict. Then ask: is this an extreme reading fighting the trend, or an extreme reading that fits a tired move after a long run? Writing that sentence down is more useful than memorising a 70/30 rule.
For information and education only. Not investment advice. Ratings are produced by an automated model, can be wrong, and may be out of date. Do your own research; you can lose money investing.