#TradingTools101 The RSI (Relative Strength Index) is an oscillator that measures the speed and change of price movements. It moves between 0 and 100, where values above 70 usually indicate overbought, and below 30, oversold. It is useful for detecting possible trend changes or confirming strength in one direction.
The MACD (Moving Average Convergence Divergence) compares two exponential moving averages (generally of 12 and 26 periods) and generates signals through crosses with its signal line (a 9-period average of the MACD). This indicator is widely used to identify momentum and possible entries or exits in the market.