What RSI actually measures
 The Relative Strength Index (RSI) is a momentum oscillator that compares the magnitude of recent gains to recent losses over a fixed lookback period (14 periods by default). It outputs a single value between 0 and 100. Traditionally, readings above 70 are considered overbought, while readings below 30 are considered oversold. 
 RSI does not measure trend direction or intrinsic value — it measures the speed and strength of recent price movement. In a strong uptrend, an asset can remain overbought for weeks. 
The formula
 RSI = 100 − [100 ÷ (1 + RS)], where RS = average gain ÷ average loss over the selected lookback period. RSI Monitor uses Wilder's smoothing method, which is effectively an exponential moving average with α = 1 / period. This is the original method introduced by J. Welles Wilder Jr. in 1978 and the default implementation used by TradingView and most professional charting platforms. 
How to interpret RSI
  • RSI > 70: Buying pressure has been unusually strong recently. In downtrends, this often marks the end of a relief rally. In strong uptrends, however, RSI can stay elevated for an extended period. 
  • RSI < 30: Selling pressure has been unusually strong recently. In uptrends, this may present a dip-buying opportunity. In downtrends, it can signal continued weakness rather than a reversal. 
  • Divergence: If price makes a new high while RSI fails to do the same, momentum may be weakening even though price is still rising. 
What beginners often get wrong
 Treating RSI as a simple binary signal ("oversold = buy") is one of the most common mistakes new traders make. RSI works best in ranging markets, during momentum divergences, and as a confirmation tool — not as a standalone entry signal.