Recent gains against recent losses, on a 0-100 scale
The relative strength index compares the size of recent gains with recent losses and expresses it from 0 to 100. Above 70 is conventionally read as overbought and below 30 as oversold. But in a strong advance it can sit above 70 for a long stretch, so the number alone does not settle anything.
Over 14 days, gains totaling $140 against losses of $60 give an RSI of 140 ÷ (140 + 60) × 100 = 70.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.