Relative Strenght Index [RSI]
There's more than one definition of RSI, but most often it's defined as:
"The Relative Strength is measured by looking at the daily positive and negative changes"
In natural terms, you can say that RSI is being measured if a stock is getting over-sold, overbought or just staying in the middle. It's done by tracking the stock for how many days it has been rising or falling in a given period of time. For example - If a stock has been in the gaining side for too long, there's a lesser chance that it will take a break. To visualize the increased risk, our charts are colored with a red line. This line doesn't mean that you must sell right away, but it just means that to watch it even closer. Some stocks go very high, while being over-bought on RSI, like the stock shown below. Over-sold is colored with the green colour. In most cases, RSI is calculated for 14 or 21 days, depending on the charting period.