RSI (Relative Strength Index) compresses the strength of recent moves into a single number from 0 to 100, often used to gauge whether price has risen too fast or fallen too far in the short term. Below, we read Binance klines and compute the current RSI(14) with the standard Wilder method.
When live data can't be read, paste your own list of closing prices to compute it. The standard period is 14.
Overbought doesn't mean an immediate drop, and oversold doesn't mean an immediate bounce. In a strong trend, RSI can stay pinned high or low for a long time. Don't treat a single indicator as your reason to buy or sell — decisions should factor in trend, fundamentals and your own risk tolerance.
| RSI range | Common reading | What to watch for |
|---|---|---|
| 70 – 100 | Overbought, rising quickly short-term | In a strong uptrend it can stay high for a long time — don't rush to short |
| 50 – 70 | Firm, bulls have the edge | Neutral-to-bullish, read alongside the trend |
| 30 – 50 | Weak, bears have the edge | Neutral-to-bearish, read alongside the trend |
| 0 – 30 | Oversold, falling sharply short-term | In a downtrend it can stay low for a long time — don't rush to bottom-fish |
These are common usages, for reference only and not trading advice.
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Sign up on Binance with BN771 →RSI stands for Relative Strength Index, introduced by Welles Wilder in 1978. It looks at a recent stretch of time — commonly 14 periods — and asks which is stronger: the force of the up moves or the down moves. It takes the average size of the up moves and the average size of the down moves, compares them, and converts that into a number from 0 to 100. The higher the number, the more the recent momentum has favored gains; the lower, the more it has favored losses. Fifty is the midline where bulls and bears are roughly balanced.
The two levels you'll hear about most are 70 and 30. When RSI pushes above 70 it's usually called "overbought" — meaning price has risen quite fast in the short term and the buyers' force is stretched. Below 30 it's "oversold" — price has fallen sharply and the sellers' force is stretched. Many people treat these two lines as "top" and "bottom" hints, watching for a pullback when overbought and a bounce when oversold. This tool uses the standard Wilder smoothing method, matching the RSI(14) definition in mainstream trading software, so the value you see here should be very close to the one on an exchange chart.
But here's the trap beginners fall into most often: overbought doesn't mean an immediate drop, and oversold doesn't mean an immediate bounce. In a strong uptrend, RSI can stay "stuck" above 70 for weeks while price keeps climbing; in a downtrend the same holds — RSI can sit below 30 for a long time, and whoever bottom-fishes gets stuck. So a high RSI is not a short signal, and a low one is not a bottom-fishing signal — it only describes the current momentum state.
A more solid approach: first, read RSI alongside the trend — with the bigger direction, it's better at helping you find pullback entries than at fighting the tape. Second, watch for divergence between RSI and price (price makes a new high but RSI doesn't); signals like that carry more weight than plain overbought/oversold. Third, never make a decision on one indicator. For a systematic start, read the RSI beginner's guide; to feel the market's overall mood at the same time, pair it with the Fear & Greed Index.