Relative Strength Index

The Relative Strength Index is one of the most widely used indicators that traders & investors use on their charts. Below is an example of how it can provide accurate Buying and Selling confirmation signals when used in conjunction with other tools such as Support, Resistance & Fibonacci Retracement.

Caveats: The RSI can be Oversold or Overbought for extended periods of time and doesn’t always indicate an exact bottom or top in the market. Like all other indicators, you should use it as one of the aspects of your analysis, it’s not a complete package by itself.