> For the complete documentation index, see [llms.txt](https://guide.bytemine.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.bytemine.io/relative-strength-index.md).

# Relative Strength Index

## Description

The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. The indicator was originally developed by J. Welles Wilder Jr.

Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.

## Trading Strategy

A buy signal is produced when the RSI is below the minimum RSI threshold. A sell signal is produced when the indicator is above the maximum RSI threshold.