RSI (Relative Strength Index)

RSI is a momentum indicator that measures how fast a stock's price is moving up or down on a scale of 0 to 100. You'll see it in technical analysis charts—it helps traders spot when a stock might be overbought (trading too high, around 70+) or oversold (trading too low, around 30 or below). The idea is that extreme readings can signal a potential reversal or pullback. For example, if TechCorp stock's RSI suddenly spikes to 85, some traders interpret that as a sign the price has risen too quickly and might cool off soon. It's not a crystal ball—plenty of stocks stay overbought or oversold for a while—but it's a useful tool to add context to your trading decisions.