This indicator is named after its initials: Relative Strength Index. Similar to stochastic and also identifies conditions of overbought or oversold market.
Also uses a scale of 0 to 100.
Typically, the readings below 20 indicate oversold and above 80 indicate over-purchase.
How to use the RSI?
The RSI can be used as the stochastic. According to the above chart we see that when RSI falls below 20, correctly identifies a condition on-sale. After falling, the price quickly rises again.
