The RSI indicator evaluates overbought or oversold conditions in the price of a stock by measuring the speed and magnitude of recent price changes. Stocks can fall when they are overbought and rise when they are oversold.
RSI indicator value always remains between 0 and 100.
When the RSI is above 70, it is said to be overbought. This level can vary from 60-100 depending on market conditions, the security being traded and indicator parameters.
When the RSI is below 30, it is said to be oversold. This level can vary from 40-0 depending on market conditions, the security being traded and indicator parameters.