How to Use the RSI Indicator in TradingView (2025)

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Written By Mind Math Money

Updated March 4, 2025

Key Takeaways

  • The RSI indicator measures momentum and helps identify overbought (above 70) and oversold (below 30) conditions.

  • RSI divergence, where price and RSI move oppositely, can signal potential trend reversals.

  • Combine RSI with other tools like moving averages and price action for better trading accuracy.

Today, we're breaking down one of the most powerful and widely-used trading tools: the RSI Indicator (Relative Strength Index). Specifically, you'll discover practical strategies for using RSI effectively in TradingView. Whether you're an experienced trader or just beginning your trading journey, mastering RSI can help you spot profitable opportunities, better manage risk, and significantly elevate your trading results.

Prefer watching to reading? 📺 Here's a quick, beginner-friendly YouTube guide (just 2 minutes!) showing exactly how to set up and use the RSI indicator in TradingView.

Adding the RSI Indicator

To start using the RSI indicator in TradingView, first, navigate to the ‘Indicators’ tab at the top of the page. Here, you can simply search for 'RSI' or 'Relative Strength Index'. Select the first indicator named 'Relative Strength Index', and it will appear at the bottom of your chart.

TradingView Indicators Tab

Understanding RSI Basics

The RSI is a momentum indicator, measuring the speed and change of price movements. It moves between zero and 100. Generally, when the RSI is above 70, it may indicate that an asset is overbought, while an RSI below 30 might suggest an oversold condition.

Overbought and Oversold – What Does It Mean?

In the trading world, 'overbought' refers to a situation where prices have risen more than the market average. Conversely, 'oversold' means prices have fallen more than usual. These conditions can signal potential reversal points; however, it's crucial to note that continuation of the current trend is also possible. For instance, an overbought RSI can remain high during a strong uptrend. That’s where the power of RSI Divergence comes in.

The Power of RSI Divergence

One effective way to utilize the RSI is by identifying divergences. A divergence occurs when the price action of an asset moves in the opposite direction of the RSI. For example, if the price makes higher highs while the RSI makes lower highs, this is known as a bearish divergence, often indicating a potential reversal to the downside.

RSI Divergence

FAQ

What is the RSI indicator?

The RSI (Relative Strength Index) is a momentum indicator that measures the speed and change of price movements. It oscillates between 0 and 100 and is used to identify overbought or oversold conditions in a market.

How do I interpret RSI values?

Generally, an RSI above 70 indicates that an asset may be overbought, while an RSI below 30 suggests it may be oversold. However, these levels can vary depending on the market and asset.

What is RSI divergence?

RSI divergence occurs when the price moves in the opposite direction of the RSI. For example, a bearish divergence happens when price makes higher highs but RSI makes lower highs, signaling a potential reversal.

Can RSI be used alone for trading decisions?

No, RSI should not be used in isolation. Combine it with other indicators, price action, and market structure for more reliable trading decisions.

How do I add the RSI indicator in TradingView?

In TradingView, click the ‘Indicators’ tab, search for ‘RSI’ or ‘Relative Strength Index’, and select it to add it to your chart.

Quiz

What does RSI stand for?

What RSI value typically indicates an overbought condition?

What is a bearish divergence in RSI?

True or False: RSI should be used as the sole indicator for trading decisions.

Where can you find the RSI indicator in TradingView?

Conclusion

The RSI indicator is a powerful tool in your TradingView arsenal. By understanding its basic concept, and especially by paying attention to divergences, you can enhance your trading analysis significantly. Remember, no indicator should be used in isolation, but rather as part of a comprehensive trading strategy. It’s a good rule of thumb to always combine indicators with price action and market structure to improve the win rate.

For a more in-depth analysis, consider combining the RSI with another powerful TradingView tool – the moving average. To learn more about effectively using the moving average in conjunction with the RSI, check out our detailed guide here.

Read More on Mind Math Money

How to Add Moving Averages in TradingView

Learn how to integrate moving averages with RSI for trend confirmation and better entry points.

Understanding the MACD Indicator

Explore how MACD complements RSI to spot momentum shifts and trend changes.

RSI Divergence Trading Strategy

Master RSI divergence for forecasting reversals in forex, crypto, and stocks.

The Auto Chart Patterns TradingView Indicator

Enhance your RSI analysis with TradingView’s auto chart patterns tool.

About the Author: Mind Math Money

I bought my first stock at 16, and since then, financial markets have fascinated me. Understanding how human behavior shapes market structure and price action is both intellectually and financially rewarding.

I’ve always loved teaching—helping people have their “aha moments” is an amazing feeling. That’s why I created Mind Math Money to share insights on trading, technical analysis, and finance.

Over the years, I’ve built a community of over 200,000 YouTube followers, all striving to become better traders. Check out my YouTube channel for more insights and tutorials.

Mind Math Money
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