Market statisticians and traders use the RSI with other technical indicators to identify opportunities to enter or exit a position. When the RSI surpasses the horizontal 30 reference level ...

is a momentum indicator that measures recent price changes as it moves between 0 and 100. The RSI provides short-term buy and sell signals and is used to track the overbought and oversold levels ...

short-term traders use a shorter period, such as a 7, or a lower period RSI. Whereas longer-term traders may opt for a higher period, such as a 18 to 26 period RSI for a smoother indicator line.