The Relative Strength Index (RSI) ranges between 0 and 100. Generally, when the RSI reading is above 70, it indicates that the stock is in the overbought area, suggesting a potential pullback. Conversely, when the RSI reading is below 30 on the price chart, it indicates that the stock is in the oversold area, suggesting a potential rise.
The Relative Strength Index (RSI) has reversed downward from the oversold area.
When the Relative Strength Index exceeds the threshold (watermark) of 70 or 20, it may be considered a trading signal. However, this signal should not be relied upon alone when developing your trading strategy.
