Relative Strength Index (RSI)

The relative strength index is a momentum indicator. The RSI aims is to measure the magnitude of price changes and identify overbought or oversold conditions in an asset. Its reading varies from 0 to 100. Values smaller than 30 are considered oversold, while those higher than 70 overbought. Divergence between the Relative strength index and price action can be very helpful in determining reversal areas.

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