RSI (Relative Strength Index) — what it is and how to use it in trading
Definition
RSI (Relative Strength Index) is an oscillator that measures the strength and speed of recent price moves on a 0-100 scale, comparing average gains to average losses over the last period candles.
How it works in the builder
The rsi operand takes a period parameter (default 14). Values below 30 usually mean the asset is oversold and a bounce is possible; above 70 means it is overbought and a pullback is possible.
What it looks like on the chart
Drawn as a separate panel below the price chart with horizontal levels at 30 and 70 (sometimes 20/80) — the line oscillates between them, and crossing those levels is read as a signal.
Typical use
Typical condition: rsi(14) < 30 to look for a long entry after a sell-off, or rsi(14) crossed_above 30 — the moment it exits the oversold zone.
Common pitfalls
In a strong trend RSI can stay in the "overbought" or "oversold" zone for a long time without reversing — crossing 30/70 alone doesn't guarantee a reversal. RSI is often paired with a trend filter (an EMA) to avoid trading against a strong move.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.