What Is RSI (Relative Strength Index)?
RSI (Relative Strength Index) is a momentum oscillator that moves between 0 and 100. It's used to gauge whether a market is overbought (typically above 70) or oversold (below 30), and to spot momentum shifts and divergences.
How to read RSI
- Above 70 = potentially overbought (momentum stretched up).
- Below 30 = potentially oversold (momentum stretched down).
- Divergence: price makes a new high but RSI doesn't — a possible momentum warning.
Using it well
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I break this down live on NQ and ES every session — so you learn the timing, not just the theory.
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What RSI is best for day trading?
The default 14-period RSI is standard; some day traders shorten it. More important is how you combine it with price.
Is RSI reliable?
It's a helpful momentum gauge, but it lags and gives false signals in strong trends. Use it as one input, not the whole strategy.
Educational content only, not financial advice. Trading futures carries substantial risk of loss.