Summary
RSI, or Relative Strength Index, compares recent upward and downward price movements over a selected period.
Parameter
Period controls the number of observations used to compare recent gains and losses. The default is 14. A shorter period responds more quickly but can be noisier; a longer period is smoother and slower to react.
How to read it
Higher readings indicate stronger recent upward movement relative to recent declines, while lower readings indicate the opposite. The selected period affects the result and its responsiveness.
Things to keep in mind
RSI is based on historical prices and can remain at higher or lower readings during a strong trend. It is not a guaranteed reversal signal.