The relative strength indicator (RSI) shows if a currency is overbought or oversold.Forex trading charts display the currency price that can be rising - with an uptrend, or falling - with a downtrend. If the currency price is on the rise it means the currency is overbought, because more and more traders buy the currency and raise its worth. If the currency price is dropping, then the currency is oversold.
Knowing if a currency price is overbought or oversold is crucial in your decision making process of investment, and this is exactly what RSI is for. The RSI is a Forex trading indicator of price fluctuations over a certain period of time.
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