RSI Explained: How to Read the Relative Strength Index

The Relative Strength Index (RSI) is a momentum indicator that measures how fast a price is moving. It's one of the first things experienced traders look at — and once you understand it, you'll wonder how you traded without it.

What is RSI?

RSI is a number between 0 and 100. It tells you whether an asset is being bought too fast (overbought) or sold too fast (oversold).

• RSI above 70 = Overbought. The price may be due for a pullback.
• RSI below 30 = Oversold. The price may be due for a bounce.
• RSI around 50 = Neutral. No strong signal.

How DeepPair Uses RSI

When DeepPair generates a signal, RSI is one of the key inputs. A BUY signal is more likely when RSI is below 50 and turning upward. A SELL signal is more likely when RSI is above 70 and turning downward.

Common Mistake: Trading RSI Alone

RSI is powerful, but it works best combined with other indicators. An RSI of 75 doesn't automatically mean "sell" — in a strong bull market, RSI can stay above 70 for weeks. Always wait for confirmation.

Quick Reference

RSI Value	Meaning	Action
0–30	Oversold	Watch for bounce
30–50	Weak/Bearish	Wait
50–70	Neutral/Bullish	Watch trend
70–100	Overbought	Watch for reversal

What to Do Next

Now that you understand RSI, try generating a signal on DeepPair and look at the RSI reading in the expanded card view. See if the RSI matches what you'd expect based on the chart.