RSI (Relative Strength Index)
A momentum oscillator measuring the speed and magnitude of recent price changes on a scale of 0-100.
Explained Simply
RSI compares the average gain to the average loss over a period (typically 14 days). Above 70 is considered overbought (potential sell signal), below 30 is oversold (potential buy signal). However, in strong trends, RSI can stay overbought/oversold for extended periods. The most reliable RSI signals come from divergences — when price makes a new high but RSI doesn't, suggesting momentum is weakening.
How Tradewink Uses RSI (Relative Strength Index)
RSI is one of 15+ technical indicators the AI evaluates for every signal. It's particularly important for mean reversion signals (RSI below 30 is a core trigger). The AI also uses RSI divergences as an early warning for momentum exhaustion and as an exit signal for trending positions.
Related Terms
Learn More
Momentum Trading Strategy: Ride the Trend with AI
Momentum trading is the most proven edge in stock markets. Learn how to identify momentum stocks, time entries, manage risk, and use AI to automate the process.
Mean Reversion vs. Momentum: When to Use Each Strategy
Should you buy the dip or ride the trend? The answer depends on the market regime. Learn when each strategy works and how AI adapts between them.
See RSI (Relative Strength Index) in action
Tradewink uses rsi (relative strength index) as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.