$ 19,030.53
$ 1,051.81
$ 0.999863
$ 0.447337
$ 0.312046
$ 1.00

What is the Relative Strength Index (RSI)?

Like the stochastic oscillator, the relative strength index is a momentum indicator used by traders to measure the extent of recent price movements to identify an overbought or oversold cryptocurrency or another asset. The relative strength index was firstly introduced by J. Welles Wilder Jr. in his book “New Concepts in Technical Trading Systems” in 1978.

Why is the Relative Strength Index Important?

The indicator is displayed as a line in a graph that continuously moves between two limits – 0 and 100. According to the traditional interpretation of the RSI, values equal to or above 70 show that a cryptocurrency is becoming overbought/overvalued and may experience a corrective pullback in price. On the other hand, a relative strength index equal to or below 30 implies that a cryptocurrency is oversold/undervalued.

What is the Relative Strength Index (RSI)?
The formula for the relative strength index (RSI).

The average percentage loss or gain during a look-back period is the average gain or loss in this calculation. After 14 periods of data become available, you can calculate the second part of the RSI formula.

What is the Relative Strength Index (RSI)?
The second formula for the relative strength index (RSI).

Being an important tool as a trading indicator, understanding what the RSI tells you is a must. According to Constance Brown, an uptrend is indicated when an oversold cryptocurrency’s RSI is way higher than 30% and that a downtrend is indicated when an overbought cryptocurrency’s RSI is way lower than 70%.

Also Read: What Are Fibonacci Retracements & Fibonacci Ratios?


  • The relative strength index (RSI) is a momentum indicator that indicates whether a cryptocurrency is being oversold or overbought.
  • It can have readings from 0 to 100. The higher the RSI the more a cryptocurrency is becoming overbought, and vice versa.
  • This indicator was first introduced by J. Weller Wilder Jr. in 1978.

Also read:

Related News

Is KuCoin Token a Good Investment – Should You Invest in KuCoin?

The cryptocurrency market saw one of the biggest bull runs in its history back in 2021. During this time, several tokens and cryptocurrencies made millionaires overnight. However, as the market grew, people began taking profits, leading to a market correction. In early 2022, the market was attempting to recover, but with everything that was happening around the world, it failed to do so.  One token that is performing well even during these

Read More »

How to Use Pacoca  – A Step-by-Step Guide

  Pacoca is a comprehensive DeFi hub where investors may monitor and invest in several initiatives. Since its inception, the platform has seen tremendous success, drawing a large number of daily investors who use it daily. Decentralized finance (DeFi) is the most profound change to ever occur in the financial markets, and it is expanding rapidly, with almost new protocols being released each day.  Although, there is still a severe

Read More »

Here are 3 Reasons Why You Should Use KuCoin Exchange to Buy Cryptocurrency

KuCoin is a global exchange for cryptocurrencies that started operating in 2017. The platform enables trading in futures and margin products using an extensive selection of tokens. In addition, KuCoin is an attractive cryptocurrency exchange due to its low fees and extensive feature set. KuCoin’s extensive features, low fees, and a wide variety of cryptocurrencies make it an ideal platform for experienced and even new cryptocurrency traders. However, KuCoin lacks an operating

Read More »

My Coins

$ 19,030.531.23%
$ 1,051.810.24%
$ 0.4473370.85%
$ 0.9998630.11%

Newest Videos on YouTube

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy


Contact Us

For any question conatct us through:

Disclaimer: All information and materials on this website are for educational purposes only. does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: