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What is the Relative Strength Index?

The Relative Strength Index (RSI) is an oscillator. It helps to determine the price reversal points in the market’s flat (sideways) phase.

The indicator also allows you to identify overbought and oversold conditions. Like other oscillators, the RSI is best for trading on trend reversals, but it can also be used for trading in the direction of a price movement or on a sideways trend.