RSI (Relative Strength Index)
By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: March 2026
RSI is a momentum indicator measured from 0 to 100 that shows whether an asset is overbought (above 70) or oversold (below 30), helping traders identify potential reversal points.
The Relative Strength Index (RSI) measures the speed and magnitude of recent price changes to evaluate whether an asset is overbought or oversold.
RSI ranges from 0 to 100: - Above 70: generally considered overbought — the asset may be due for a pullback - Below 30: generally considered oversold — the asset may be due for a bounce - Around 50: neutral territory
RSI is calculated using the average gains and losses over a specified period (typically 14 days). A 2-week RSI is common in crypto because of the faster market cycles.
In the Altcoin Rules system, the 2-week RSI carries a 20% weight. When RSI is low (oversold), it contributes positively to the composite score because it suggests better entry conditions.
Important: RSI can stay overbought or oversold for extended periods during strong trends. It's best used in combination with other indicators rather than as a standalone signal.
Related Terms
Altcoin Rules
Altcoin Rules is Alpha Factory's 8-indicator scoring system that evaluates whether conditions are favorable for buying an altcoin, combining Risk Wave, RSI, Fear & Greed, token unlocks, and more into a single composite score.
Volatility
Volatility measures how much an asset's price fluctuates over time. Crypto is significantly more volatile than traditional assets, meaning larger potential gains but also larger potential losses.
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