The Wilder’s Relative Strength Index (RSI) is a rate of change oscillator developed by J. Welles Wilder, Jr. This indicator is used to identify positive and negative divergences with price, and to signal overbought or oversold conditions. A reading of 70% or higher suggests the market is overbought and values near the 30% level indicate the that the market is oversold.

Wilder's Relative Strength Index (RSI)

Chart courtesy of Prophet Financial Systems