RSI Analysis: How to Spot Oversold and Overbought Conditions
Master RSI (Relative Strength Index) analysis to improve your trading decisions. Learn how to interpret RSI signals, spot divergences, and identify the best entry and exit points for your trades.
What is RSI?
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of price changes. Developed by J. Welles Wilder, RSI ranges from 0 to 100 and helps traders identify overbought and oversold conditions.
Our ticker screener automatically calculates RSI for every stock and highlights those with favorable RSI levels for swing trading opportunities. Learn more about technical analysisand swing trading strategies.
Understanding RSI Levels
Overbought Conditions (RSI > 70)
When RSI rises above 70, it typically indicates that a stock may be overbought. This suggests that buying pressure has pushed the price too high, and a potential reversal or pullback may occur.
Oversold Conditions (RSI < 30)
When RSI falls below 30, it usually indicates that a stock may be oversold. This suggests that selling pressure has pushed the price too low, and a potential bounce or reversal may occur.
How to Use RSI with Our Ticker Screener
Our ticker screener makes RSI analysis easy by automatically calculating and displaying RSI values for all stocks. You can filter stocks based on specific RSI ranges to find the best trading opportunities. For more advanced analysis, check out our MACD signals guideand ticker screener tutorial.