The RSI (Relative Strength Index) is a line between 0 and 100 in its own panel under the chart. It measures how strong the recent moves have been: whether the up days have clearly outweighed the down days, or the other way round. Turn it on with the RSI button.
Equinor over six months with the RSI below. The dashed lines mark 70 and 30.
The RSI here looks at the last 14 candles. It compares the average size of the up moves with the average size of the down moves. If every candle closed higher, the RSI would be 100; if every candle closed lower, 0. A stock moving up and down by similar amounts sits around 50.
Tip: "Overbought" doesn't mean "about to fall". It means "has risen fast". Those are not the same thing.
A divergence is when the price and the RSI disagree. If the price makes a new high but the RSI peaks lower than last time, the latest rise had less strength behind it than the one before. Traders watch for this as an early hint that a trend is tiring. Like everything else here, it's a hint, not a promise.
Find the times the RSI went above 70 or below 30. What did the price do in the weeks after? Then open a stock that has been rising strongly: you may see its RSI stay above 70 for a long time.
In a strong trend, the RSI can stay overbought (or oversold) for weeks while the price keeps going. Selling every time it crosses 70 would have meant selling the best stocks far too early. The RSI works best in markets that swing up and down within a range, and worst in strong trends. Read it together with the trend, for example a moving average, never on its own.
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