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Tools & Indicators
Oct 13, 2026 6 min read

RSI Indicator Explained: Overbought, Oversold and Divergence

The RSI indicator is on more charts than any other oscillator and misread on most of them. This guide explains what the number actually measures, why 70 and 30 are the wrong lines in a trend, how to read regular and hidden divergence properly, and the three ways to use RSI that hold up — with the two that quietly lose money.