RSI — Relative Strength Index

is the recent move stretched? · Price trend & timing — reading the chart

A 0–100 gauge of how much a stock has risen versus fallen over the last ~14 days — essentially, how stretched a recent move is. Above ~70 = “overbought” (risen fast, may be due for a pause). Below ~30 = “oversold” (fallen hard, may be due for a bounce).

Timing, not direction. A wonderful company can be a poor entry at RSI 75 (you’re chasing a spike); a beaten-down name at RSI 28 may be a better moment. The app uses it in the Entry/timing score — rewarding oversold, penalizing overbought — and shows it against the sector median, because an oversold reading in a firm sector is a stronger signal than one falling with the whole group.

RSI = 100 − 100 ÷ (1 + RS)
RS  = (average gain over 14 days) ÷ (average loss over 14 days)

RS

— “relative strength” — the ratio of average up-days to average down-days

14

— the lookback window in days (the standard setting)

• The Balance — trading with the RSI ↗