The Relative Strength Index (RSI) is a popular momentum indicator that measures the velocity and magnitude of directional price movements.

RSI computes momentum as the ratio of higher closes to lower closes.

The most typically used period is a 14-period timeframe.

When comparing RSI with its 7-period moving average buying/selling signals can be generated.

If the RSI is above its 7 periods moving average, it’s a buy signal, if the RSI is below its 7-period moving average, it’s a sell signal.

The RSI scale ranges from 0 to 100 and is used by traders to identify ‘overbought’ & ‘oversold’ conditions.

Typically, if the RSI is above 70 it is considered “overbought” and if the RSI is below 30, it is considered to be “oversold”.

The RSI indicator can be found within the trading platform under ‘Insert -> Indicators -> Custom -> RSI’.

Note: The ‘Period’ varies according to the timeframe of the chart that has been selected.