RSI: Momentum Zones

Learn RSI: Momentum Zones — part of our Technical Indicators series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

· 3 min read

Relative Strength Index (RSI)

RSI (default 14 periods) oscillates between 0 and 100, measuring recent gain vs loss magnitude. Widely used zones:

  • Above 70 — often labelled overbought (strong recent buying; not an automatic sell).
  • Below 30 — often labelled oversold (strong recent selling; not an automatic buy).
  • 50 line — general bull/bear momentum divider in uptrends vs downtrends.
<30 30–70 >70 In strong trends, RSI can stay >70 or <30 for extended periods.

In an uptrend, look for RSI pullbacks toward 40–50 before continuation — not blind sells at 70.