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Chart Lesson:

Relative Strength Index (RSI)
The Relative Strength Index (RSI) measures the relative balance of buyers and sellers in the market. When a 9-day RSI is above 80 or below 20 (70 and 25 in some markets), the market is considered to be overbought or oversold. It's likely to reverse direction, unless the reason for the trend is extremely compelling, from a fundamental analysis standpoint.


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