What is the Relative Strength Index Indicator?

Relative Strength Index (RSI) indicator showing overbought and oversold levels on a stock price chart

While stock trading involves navigating an array of complex metrics, it becomes increasingly helpful if there are mathematical tools built into the trading system to help indicate the mechanics of the price. Indicators are the tools that are generally used to achieve this projection. They are basically categorized into four main classes: Trend, Momentum, Volatility, … Read more