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The Relative Strength Index, or RSI, is perhaps the most popular of all Technical Analysis indicators. Let’s get some definitions out of the way so we can begin to explore what it really does.

Developed by J. Welles Wilder, the Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100. Traditionally, and according to Wilder, RSI is considered overbought when above 70 and oversold when below 30.

Let’s understand how it can help us.

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