RSI (Relative Strength Index)
A 0–100 speedometer for how hard a price has been pushed recently.
RSI compares the size of recent gains with the size of recent losses over a set number of days — 14 by default — and expresses it as a number between 0 and 100.
Above 70 is called *overbought*: the price has risen fast and may be due a pause. Below 30 is *oversold*: it has fallen fast. Around 50 means buyers and sellers have been evenly matched.
It measures speed, not direction of value. A strong company can be overbought and a weak one oversold; RSI says nothing about whether the business is any good.
RSI(14) of 26 means the fall has been steep and persistent — of the last 14 days' movement, far more was down than up. RSI 72 is the mirror image.
Above 70 — overbought, the rise has been fast
30 to 70 — the ordinary range
Below 30 — oversold, the fall has been fast
In a powerful trend RSI can sit above 70 (or below 30) for weeks while the price keeps going. "Overbought" is not a signal to expect a reversal — it describes what has already happened.
Analysis only: Supath AI does not give investment advice. Consult a SEBI-registered financial advisor before making investment decisions.