Editing Relative strength index (section)

===Principles===
Wilder posited<ref name="wilder" /> that when price moves up very rapidly, at some point it is considered overbought. Likewise, when price falls very rapidly, at some point it is considered oversold. In either case, Wilder deemed a reaction or reversal imminent.

The level of the RSI is a measure of the stock's recent trading strength.  The slope of the RSI is directly proportional to the velocity of a change in the trend. The distance traveled by the RSI is proportional to the magnitude of the move.

Wilder believed that tops and bottoms are indicated when RSI goes above 70 or drops below 30. Traditionally, RSI readings greater than the 70 level are considered to be in overbought territory, and RSI readings lower than the 30 level are considered to be in oversold territory. In between the 30 and 70 level is considered neutral, with the 50 level a sign of no trend.
<ref>{{cite web|title=Relative Strength Index|url=https://www.investorsunderground.com/technical-indicators/rsi-relative-strength-index/|website=Investors Underground|publisher=Day Trading Encyclopedia|access-date=29 June 2016}}</ref>