Relative Strength Index (RSI) is a technical analysis indicator that measures the speed and change of price movements to identify overbought or oversold conditions in a stock or asset.
RSI is a momentum oscillator that moves between 0 and 100 and helps traders understand whether a stock is overvalued or undervalued in the short term.
It is widely used in stock markets like the National Stock Exchange and Bombay Stock Exchange under regulation of the Securities and Exchange Board of India.
👉 RSI = 100 – [100 ÷ (1 + RS)]
(RS = Average Gain ÷ Average Loss)
"If a stock’s RSI is 75, it may be overbought, indicating a possible short-term decline."