Is RSI better on daily or intraday charts?

RSI works on any timeframe, but reliability generally increases with higher timeframes. Daily and 4‑hour charts tend to give more meaningful RSI signals than 1‑minute charts, where noise and spreads can dominate. Many traders align intraday entries with RSI on a higher timeframe trend.

How reliable are RSI divergences?

RSI divergences can warn of weakening momentum but are not standalone entry signals. In strong trends, divergences can appear repeatedly without a major reversal. They work best when combined with support/resistance, price patterns, or volume, and when they occur after an extended move.

What is the difference between RSI and Stochastic?

RSI compares the magnitude of recent gains to recent losses, while Stochastic compares the current close to the recent high–low range. Both are momentum oscillators, but RSI is usually smoother and less whipsaw‑prone. Many traders use RSI for trend/momentum context and Stochastic for more precise timing.

RSI Calculator – Relative Strength Index Online Tool

Q: What is a good RSI value?

Traditionally, RSI above 70 is considered overbought and below 30 oversold. However, in strong uptrends RSI can stay above 50–60 for a long time, and in downtrends it can stay below 40–50. Many traders use RSI relative to its recent range and the overall trend instead of fixed levels only.

Q: Which RSI period should I use?

The classic RSI period is 14. Shorter periods like 7 or 9 make RSI more sensitive and generate more signals but also more noise. Longer periods like 21 or 28 smooth the indicator and reduce false signals but react more slowly. Swing traders often use 14, scalpers may use 7–9, and position traders 21+.

What is the Relative Strength Index (RSI)?

The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder. It measures the speed and magnitude of recent price changes on a scale from 0 to 100, helping traders identify overbought and oversold conditions.

RSI is widely used in stocks, forex, crypto, commodities, and indices. It works on any timeframe, from 1‑minute charts to monthly charts.

RSI formula

Step 1 – Price change

\(\Delta P_t = \text{Close}_t - \text{Close}_{t-1}\)

Step 2 – Separate gains and losses

\(\text{Gain}_t = \max(\Delta P_t, 0)\)
\(\text{Loss}_t = \max(-\Delta P_t, 0)\)

Step 3 – Initial averages (first RSI value) over N periods:

\(\text{AvgGain}_N = \dfrac{\sum_{t=1}^{N} \text{Gain}_t}{N}\)
\(\text{AvgLoss}_N = \dfrac{\sum_{t=1}^{N} \text{Loss}_t}{N}\)

Step 4 – Wilder’s smoothing for subsequent bars:

\(\text{AvgGain}_t = \dfrac{\text{AvgGain}_{t-1} \cdot (N-1) + \text{Gain}_t}{N}\)
\(\text{AvgLoss}_t = \dfrac{\text{AvgLoss}_{t-1} \cdot (N-1) + \text{Loss}_t}{N}\)

Step 5 – Relative Strength and RSI

\(\text{RS}_t = \dfrac{\text{AvgGain}_t}{\text{AvgLoss}_t}\)
\(\text{RSI}_t = 100 - \dfrac{100}{1 + \text{RS}_t}\)

If \(\text{AvgLoss}_t = 0\), RSI is defined as 100 (no losses in the lookback window).

How to use this RSI calculator

Choose the RSI period (default 14).
Select whether you have Close only or High/Low/Close data.
Paste your price data, one bar per line, newest at the bottom.
Click “Calculate RSI”.
Check the latest RSI value, the status (overbought/oversold), the chart, and the detailed table.

Interpreting RSI values

RSI > 70: traditionally overbought (price has risen quickly).
RSI < 30: traditionally oversold (price has fallen quickly).
RSI between 30 and 70: neutral zone.
RSI > 80 or < 20: extreme conditions, often after strong trends.

Remember: overbought does not always mean “must fall now”, and oversold does not always mean “must rise now”. In strong trends, RSI can stay overbought or oversold for a long time.

RSI trading tips (not financial advice)

Trend filter: In uptrends, focus more on RSI pullbacks toward 30–40 as potential buying zones; in downtrends, focus on RSI rallies toward 60–70 as potential selling zones.
Divergences: A bullish divergence occurs when price makes a lower low but RSI makes a higher low. A bearish divergence occurs when price makes a higher high but RSI makes a lower high.
Combine with support/resistance: RSI signals are stronger when they align with key price levels, moving averages, or chart patterns.
Adjust period: Shorter periods (7–9) are more aggressive; longer periods (21–28) are more conservative.

Limitations of RSI

Generates many signals in sideways markets; some will be false.
Can stay overbought/oversold for long periods in strong trends.
Does not account for volume, news, or fundamentals.

Always backtest your RSI strategy and combine it with risk management and other tools before trading with real money.

FAQ

What is a good RSI value?

There is no single “good” RSI value. Many traders look for RSI crossing above 30 after being oversold, or below 70 after being overbought. Others use 40–60 bands in trending markets. The best thresholds depend on your asset, timeframe, and strategy.

Which RSI period should I use?

14 is the classic default. If you want more signals and are comfortable with noise, try 7–9. If you prefer smoother signals and fewer trades, try 21–28. You can also use multiple RSIs (e.g., 7 and 21) to confirm signals.

Does RSI work on crypto and forex?

Yes. RSI is purely mathematical and works on any instrument with price data: stocks, ETFs, indices, forex, crypto, commodities, and more. Volatile assets may require adjusted thresholds or periods.

Is RSI enough on its own?

Most professional traders use RSI as one component of a broader system that includes trend filters, support/resistance, risk management, and sometimes other indicators (like moving averages or volume).

Can I export RSI values?

Yes. After calculation, use the “Download CSV” button to export all computed RSI values, average gains/losses, and price changes for further analysis in Excel or other tools.

RSI Calculator – Relative Strength Index

RSI Calculator

RSI & Price Chart

RSI values by bar