> For the complete documentation index, see [llms.txt](https://docs.memejob.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.memejob.fun/memejob/introducing-ai-agents/agentic-and-data-layer/technical-indicators/relative-strength-index.md).

# Relative Strength Index

#### What is RSI? 

The RSI is a momentum oscillator. Think of it like a speedometer for price changes. 

Range: It moves between 0 and 100.

It compares the magnitude of recent gains to recent losses.

* If the price is going up rapidly with very few down candles, the RSI approaches 100.
* If the price is crashing without relief, the RSI approaches 0.

<figure><img src="https://encrypted-tbn2.gstatic.com/licensed-image?q=tbn:ANd9GcQqJ-Q6ArU38wsFEDXP3_QMW7lvQvCMNHpXgAxyDvBk5z6vytp5spQZ0VclSP4v-KNVtSGjL6KTp-7W0wP-rY2R1u6pMVtj9lWNL53_U13h3mb6UaM" alt=""><figcaption></figcaption></figure>

#### Main use

RSI is commonly used to answer two questions that moving averages cannot:

1. "Is the price too expensive right now?" (Overbought)
   * When RSI > 70, the asset is considered "overheated." The buyers are exhausted, and a reversal (price drop) is likely.
2. "Is the price too cheap right now?" (Oversold)
   * When RSI < 30, the asset is "oversold." The sellers are exhausted, and a bounce (price rise) is likely.

Use Case: While your current Moving Average tools tell you *what the trend is* (Up or Down), RSI tells you *if the trend is about to end*.