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Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a technical analysis indicator that measures the strength and momentum of a security's price action. The RSI is calculated by comparing the average gains and losses of a security over a certain time period, typically 14 days.

The RSI is expressed as a number between 0 and 100. If the RSI is above 70, the security is considered to be overbought, which means that the price has risen too far too fast and may be due for a correction. If the RSI is below 30, the security is considered to be oversold, which means that the price has fallen too far too fast and may be due for a rebound.

The RSI is a useful tool for identifying potential trend reversals or confirming existing trends. Traders often use the RSI to identify when a security is overbought or oversold, and to determine potential entry or exit points for trades.

However, it is important to note that the RSI is just one tool in a trader's toolbox, and should not be relied upon exclusively. It is also important to use other technical indicators and to consider other factors, such as market conditions and news events, when making trading decisions.

Overall, the Relative Strength Index (RSI) is a technical analysis indicator that measures the strength and momentum of a security's price action. The RSI is expressed as a number between 0 and 100, with values above 70 indicating an overbought condition and values below 30 indicating an oversold condition. The RSI is a useful tool for identifying potential trend reversals or confirming existing trends, but should be used in conjunction with other technical indicators and market information.

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