Indicators · Lesson 16

RSI indicator explained

Overbought or oversold?

RSI tells you if a move is stretched.

RSI 14 on gold

RSI 14 under the gold chart: above 70 is overbought, below 30 is oversold.

See today's live gold chart, trend and key levels →

Rules

  • Above 70: overbought, stretched up
  • Below 30: oversold, stretched down
  • Strong trends can stay there a long time

Above 70 is overbought, below 30 is oversold. But in strong trends RSI can stay there a long time, so do not sell just because it is above 70.

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