03/06/2026
Indicator Explained: RSI
RSI is one of the most-checked indicators in forex trading. Here is what it actually does.
RSI (Relative Strength Index) measures how fast and how far price has moved over a set number of candles, typically 14, and expresses that as a number between 0 and 100.
When RSI rises above 70, the market is considered overbought. Price has been climbing strongly and momentum may be reaching an extreme. When RSI drops below 30, the market is considered oversold. Selling pressure has been heavy and sustained.
Two things worth understanding beyond the basics:
In a trending market, RSI can hold above 70 for an extended period. Overbought does not equal a sell signal on its own.
RSI divergence is often more powerful than the levels themselves. If price is making a new high but RSI is not, that gap can signal weakening momentum before price confirms it.
Find it in MT5: Navigator > Oscillators > RSI. Default period is 14.
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