RSI Calculator
Calculate Relative Strength Index from closing prices. Identify overbought (>70) and oversold (<30) conditions.
Understanding RSI (Relative Strength Index)
What is RSI?
The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder Jr. in 1978. It measures the speed and magnitude of recent price changes to evaluate overbought or oversold conditions. RSI oscillates between 0 and 100, with readings above 70 indicating overbought and below 30 indicating oversold.
Formula
RS = Avg Gain / Avg Loss
RSI = 100 - (100 / (1 + RS))
RSI Interpretation
Overbought (>70)
RSI above 70 suggests the asset may be overbought and due for a pullback.
Neutral (30-70)
RSI between 30-70 indicates neither overbought nor oversold conditions.
Oversold (<30)
RSI below 30 suggests the asset may be oversold and due for a bounce.
RSI Divergence
Divergence between price and RSI can signal potential reversals.
Common RSI Periods
| Period | Type | Use Case |
|---|---|---|
| 7 | Short-term | Use 7-9 periods for shorter-term signals |
| 14 | Standard | Standard settings use 14 periods |
| 21 | Long-term | Use 21+ periods for longer-term trends |
Frequently Asked Questions
What is RSI?
RSI (Relative Strength Index) is a momentum oscillator that measures the speed and magnitude of recent price changes. It ranges from 0 to 100.
How to interpret RSI?
RSI above 70 is considered overbought (potential sell signal). RSI below 30 is considered oversold (potential buy signal). Values between 30-70 are neutral.
What RSI period should I use?
The standard period is 14. Shorter periods (e.g., 7) make RSI more sensitive. Longer periods (e.g., 21) smooth out the indicator.
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What is this tool?
RSI (Relative Strength Index) calculator computes this momentum oscillator for technical analysis. RSI measures the magnitude of recent price changes to evaluate overbought (>70) or oversold (<30) conditions. The standard 14-period RSI is one of the most widely used indicators for identifying potential reversals and confirming trends.
How to use
- 1
Enter price data
Input a series of closing prices.
- 2
Set period
Choose RSI period (default 14).
- 3
View RSI
See RSI values and overbought/oversold signals.
Frequently Asked Questions
How do I interpret RSI?
RSI above 70 indicates overbought conditions (potential sell signal). RSI below 30 indicates oversold conditions (potential buy signal). RSI divergence from price can signal trend weakness. RSI between 40-60 suggests a sideways market. Always confirm with other indicators.
What is standard RSI period?
Standard is 14. Shorter more sensitive.
What RSI settings should I use?
The standard 14-period RSI works well for most timeframes. For shorter timeframes (1-5 minute charts), use 7-9 periods for more sensitive signals. For daily and weekly charts, 14 periods is ideal. Some swing traders use 21 periods for smoother signals. You can also adjust the overbought/oversold levels: use 80/20 for more conservative signals, or 65/35 for more frequent but less reliable signals.