The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of recent price moves. It is one of the three indicators we use to generate signals on this site.
RSI answers one question: how strong have recent price gains been compared to recent losses? It does not predict direction — it measures momentum. A strong upward momentum can mean a trend is healthy, or that a pair has moved too far too fast and is due for a pullback.
RSI oscillates between 0 and 100. The calculation uses 14 candles by default (we use RSI 14 on all timeframes).
Our thresholds: Classic RSI uses 30 and 70. We use 35 and 65 — slightly tighter — to catch more signals while still filtering out noise near the centre of the range.
RSI contributes one vote to each signal. If RSI is below 35 on an H4 chart, the RSI vote is BUY. If RSI is above 65, the vote is SELL. If RSI is between 35 and 65, RSI is neutral and does not cast a vote.
A signal is generated when at least one indicator votes — but the star rating reflects how many indicators agree. An RSI-only signal (★☆☆) is our weakest rating. When RSI, MACD, and EMA all agree (★★★), the setup is the strongest.
RSI divergence occurs when price makes a new high but RSI makes a lower high — or when price makes a new low but RSI makes a higher low. This mismatch between price and momentum often precedes a reversal. We do not currently include divergence in our signal engine, but it is worth watching manually on the H4 and Daily charts.
Risk reminder: RSI is an analytical tool, not a trading system. All signals on this site are informational. Always apply your own risk management.