What is RSI?
Relative Strength Index explained in plain English — when a stock is overbought or oversold.
The simple version
RSI (Relative Strength Index) is a number between 0 and 100 that tells you whether a stock has been bought or sold too aggressively in recent days.
- RSI above 70 — the stock is "overbought." It has risen sharply and may be due for a pullback.
- RSI below 30 — the stock is "oversold." It has fallen sharply and may bounce.
- RSI around 50 — neutral. No clear signal either way.
How it is calculated
RSI looks at the last 14 trading days and compares average gains to average losses. A stock that closes higher every day for 14 days would have an RSI near 100. A stock that falls every day would have an RSI near 0.
You do not need to calculate it yourself — the chart shows it automatically.
How TradeMind AI uses RSI
RSI is one of the technical factors in our signal confidence score. An extremely overbought RSI (above 75) on a BULLISH signal is a warning flag — it may mean the easy part of the move is already done. Conversely, a BULLISH signal on an oversold stock (RSI below 35) is often higher conviction.
The catch
RSI alone is not a buy or sell signal. A stock can stay overbought for weeks in a strong uptrend. RSI is most useful when combined with price levels and overall market context — exactly what our AI does.
See it in action
Every TradeMind AI signal shows confidence score, entry, stop, target, and R-multiple — all explained with tooltip hints when you hover the term.