Relative Strength Index (RSI) is a momentum indicator used to measure the speed and change of price movements. It helps traders identify overbought or oversold conditions in a market.RSI is calculated on a scale from 0 to 100, with readings above 70 typically indicating that an asset might be overbought, suggesting a potential price correction or reversal. Conversely, readings below 30 indicate that an asset might be oversold, signaling a possible price increase.Traders often look for divergences between the RSI and the asset’s price. For example, if the price reaches new highs while the RSI declines, it may suggest weakening momentum, hinting at a possible downturn.Overall, RSI serves as a valuable tool for market analysis, helping traders make informed decisions based on price trends and momentum.