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Understanding RSI and the 70/30 levels

The Relative Strength Index measures the relative strength of recent upward and downward price changes on a scale from 0 to 100. The 70 and 30 levels are common reference zones, not guaranteed reversal signals.

Understanding RSI and the 70/30 levels — concept illustration

Reading the scale

A higher reading reflects stronger recent upward movement relative to downward movement under the selected calculation. A lower reading reflects the reverse. The lookback setting affects sensitivity.

Why a level is not a trading instruction

RSI can remain elevated or depressed during a sustained trend. A reading near 70 or 30 alone cannot establish when price will reverse.

Practise with consistent settings

Compare RSI with the price chart using the same symbol, provider and interval. Check the lookback period and whether the current candle has closed. Record observations rather than treating a threshold as a promise.

Sources

CHART WORKSHOP

Put your learning into practice.

Change one setting at a time. Check the symbol, interval and indicators in the chart toolbar.

TradingView learning chart

Load the chart to explore symbols, intervals and indicators.

Data may be delayed depending on the symbol and provider. This is a viewing and learning tool; it does not execute orders.

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