Skip to main content
Learn

Explain the Relative Strength Index (RSI) and Its Use in Identifying Overbought Conditions

Momentum oscillator (0-100); above 70 is 'overbought', indicating potential price correction or reversal.
Greeks.Live28.10.25

Explain the Relative Strength Index (RSI) and Its Use in Identifying Overbought Conditions.

The RSI is a momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100.

A reading above 70 typically indicates that an asset is 'overbought', meaning the price may be too high and due for a correction or reversal. In a pump and dump, the RSI often spikes rapidly above 80 or 90, signaling an unsustainable buying frenzy.

How Does a “Hidden Bullish Divergence” Differ from a Standard Bearish Divergence?
How Does the ‘Open Interest’ in a Futures Contract Indicate Market Sentiment?
How Do Longer-Term Traders Define the Difference between a Correction and a Bear Market?
If a Position Has 50x Leverage, What Percentage Price Change Will Result in a 100 Percent Loss of the Margin?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.