What is RSI in trading?

RS= Average gain of up periods during the specified time frame / Average loss of down periods during the specified time frame RSI values range from 0 to 100 and the standard time frame to compare up and down periods is 14 trading days.

How does the RSI work?

The RSI works best in trading ranges rather than trending markets. As a momentum indicator, the relative strength index compares a security's strength on days when prices go up to its strength on days when prices go down. Relating the result of this comparison to price action can give traders an idea of how a security may perform.

What is the default RSI value?

The default value is usually 14 periods, but it can be changed, according to what you want to achieve. When the RSI is set to 14, your charting software will calculate the current RSI value based on the last 14 periods. Many websites refer to the default RSI setting as 14 days, but that's only if you are trading on the daily chart.