What is Relative Strength Index (RSI)?

The relative strength index (RSI), in technical analysis, is a momentum indicator that's used to measure the impact of recent price changes to calculate overbought or oversold conditions of an asset. The RSI is displayed as an oscillator, or line graph that moves up and down, and is measured between 0 and 100. It is commonly accepted that an RSI rating over 70 is overbought or overvalued, while an RSI rating under 30 is oversold or undervalued. The RSI metric (like all technical indicators) should only be used as one data point to analyze current market conditions.