The Relative Strength Index (RSI)
RSI (14)
66.15
Key Indicators for Spotting Overbought Conditions
The Relative Strength Index (RSI) is one of the most popular tools for identifying overbought signals. When the RSI climbs above 70, it typically indicates that an asset may be overbought. This doesn't mean the price will immediately fall, but it does suggest caution and increased risk of a reversal.
⚠️ What to remember when RSI > 70:
- ✕ Not an immediate sell signal: Strong trends can keep the RSI overbought for a long time.
- ✕ Risk management: It is a warning to tighten your stop-losses or avoid opening new long positions.