10/09/2012 Technical Analysis: How To Use The Relative Strength Index (RSI) The RSI is a momentum indicator measuring the internal strength of a security. On a daily chart the RSI 14 gives a reading for the last 14 days. Sideways market: use the RSI to identify tops and bottoms. The RSI 14 usually tops above 70 and bottoms below 30. Overbought/oversold levels may vary depending on the security. Check on the chart to see where the RSI topped or bottomed in the past. The above chart shows the RSI 14 peaking above 60 and bottoming below 40. RSI divergence Trending market: use the RSI to identify divergences between prices and the RSI. Divergences are a warning of a probable trend reversal. A divergence between prices and the RSI is noticeable on the above chart. Between a and b the price is higher but the RSI is lower (bearish divergence).