Indicators
RSI Explained: Measuring Momentum with the Relative Strength Index
MarketLens Editorial · 12 Oct 2026
The Relative Strength Index (RSI) compares the size of recent gains to recent losses on a 0–100 scale. MarketLens uses the standard 14-period Wilder RSI.
Interpretation
- Above 70 is traditionally called overbought.
- Below 30 is traditionally called oversold.
- Around 50 indicates balanced momentum.
Important caveats
Strong trends can keep RSI above 70 or below 30 for long periods. "Overbought" does not mean "will fall". RSI is most useful alongside trend context.
Calculation in brief
Average gain and average loss are smoothed with Wilder's method over 14 sessions. RS = average gain ÷ average loss, and RSI = 100 − 100 ÷ (1 + RS).
Risk notice: Forecasts are uncertain statistical estimates. Scenarios are algorithmic outputs, not investment advice. EatoRush MarketLens is not SEBI-registered. See the Risk Disclaimer.
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