The Relative Strength Index (RSI) is a technical indicator used in trading to measure the price strength and weakness of an asset based on recent price movements. The RSI is calculated on a scale from 0 to 100, and is commonly used to identify overbought or oversold conditions. When the RSI value is above 70, the asset is considered overbought, which could be a sign that the price may be due for a downward correction. Conversely, if the RSI is below 30, the asset is considered oversold, which could indicate an opportunity for an upward price reversal. Traders use the RSI to help determine when to enter or exit a trading position. This indicator can also be used to identify ongoing trends, as well as potential trend reversals. By utilizing the RSI, traders can make more informed decisions and better manage risk in their trading activities. Proper use of RSI can help improve the overall trading strategy.