# Relative Strength Index (RSI)

*Trading & Technical Analysis — Finicade finance glossary*

RSI measures the size of recent gains against recent losses on a 0–100 scale, conventionally flagging above 70 as overbought and below 30 as oversold. Its most common misuse is treating those thresholds as trade signals: in a strong trend RSI can sit above 70 for weeks while price keeps rising. Practitioners lean more on divergence between RSI and price than on the levels themselves.

**Also known as:** RSI, relative strength index

**Related terms:** [Overbought and Oversold](https://finicade.com/glossary/overbought-and-oversold), [Divergence](https://finicade.com/glossary/divergence), [Stochastic Oscillator](https://finicade.com/glossary/stochastic-oscillator), [MACD](https://finicade.com/glossary/macd), [Technical Analysis](https://finicade.com/glossary/technical-analysis)

Source: https://finicade.com/glossary/rsi