relative strength index + Over Alert

The RSI (Relative Strength Index) is a popular momentum oscillator used in technical analysis. It measures the speed and change of price movements on a scale from 0 to 100 to help traders identify whether an asset is overvalued or undervalued.

Understanding the Alerts

• Overbought ($\ge$ 70): When the RSI line rises above 70, it signals that the asset has experienced a rapid or prolonged upward price movement. The market considers it "expensive," suggesting that the buying momentum may be exhausting and a potential price correction or reversal to the downside is ahead.
• Oversold ($\le$ 30): When the RSI drops below 30, it indicates that the asset has faced heavy and rapid selling pressure. The market considers it "cheap" or undervalued, suggesting that the selling momentum is overextended and a potential bounce or reversal to the upside might occur.