What it does
RSI measures the speed of recent price changes on a 0 to 100 scale. It compares the average gain to the average loss over the lookback period, normally 14 bars, using the formula 100 minus 100 divided by (1 plus the gain-to-loss ratio). High readings mean recent closes have been dominated by gains, low readings by losses.
Typeoscillatorseparate pane
How to add it
Click Indicators (ƒx) in the header.
Search “Relative Strength Index” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Use the classic zones: above 70 is overbought and below 30 is oversold, with reversals toward the midline often following extreme readings in ranging markets.
- Trade divergences: price making a lower low while RSI makes a higher low (bullish divergence) is one of the more reliable reversal warnings, and the mirror applies at tops.
- Respect trend shifts of the zones: in strong uptrends RSI tends to hold between 40 and 90 with the 40-50 area acting as support, so treat 40 pullbacks as buy zones rather than waiting for 30.
- Use the 50 line as a momentum filter: crossing and holding above 50 supports long setups, below 50 supports shorts.
- Confirm entries with structure: take oversold signals only at meaningful support or with a bullish candle pattern rather than on the number alone.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Length | number | 14 | 1–2000 |
| Smoothing Line | select | SMA | SMA / EMA / WMA |
| Smoothing Length | number | 14 | 1–10000 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| RSI | line | #7E57C2 |
| Smoothed MA | line | #05B878 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Reference levels
| Level | Value |
|---|---|
| Upper | 70 |
| Middle | 50 |
| Lower | 30 |
Level values, colors and line styles are editable in settings.
Tips
- Reference levels (where the study has them) are editable — tune them to the instrument you're trading.
- Hide the study from the legend eye instead of removing it when you only want it out of the way temporarily.
- Merge multiple oscillators into one pane from the legend ⋯ menu to compare them on a shared axis.
Watch out for
- In strong trends RSI can stay overbought or oversold for a long time, so fading every 70/30 reading against the trend is a losing habit.
- Divergences can persist and repeat several times before price actually turns.