Reading RSI without overreacting to it
August 2026 · 6 min read
The Relative Strength Index (RSI) measures how fast and how far price has moved recently, on a scale of 0 to 100. Readings above 70 are commonly described as overbought; readings below 30 as oversold.
The mistake most beginners make is treating those thresholds as buy or sell buttons. RSI can stay overbought for a long time during a strong trend, and selling the moment it crosses 70 has burned more accounts than it has protected.
A more useful way to use RSI is as context, not a trigger: does this reading agree with what price is doing at a key level? An oversold reading at a support zone means something different than an oversold reading in the middle of a strong downtrend.
This article is educational and does not constitute financial or investment advice. See the full risk disclosure.