The Relative Strength Index (RSI) measures recent gains versus recent losses on a 0 to 100 scale. It is a momentum oscillator, not a direct measure of a stock versus the market despite the name.
Standard settings
The default lookback is 14 periods. Readings above 70 are often called overbought. Readings below 30 are often called oversold. In strong trends, RSI can stay extreme for a long time. Do not short every 70 print in a bull market.
Useful signals
Failure swings: In an uptrend, RSI makes a lower high while price makes a higher high. That bearish divergence can warn of slowing momentum.
Range trading: In sideways markets, buying near 30 and selling near 70 can work if levels and stops are defined.
Trend confirmation: RSI holding above 50 on pullbacks can support an uptrend thesis on daily charts.
Timeframe discipline
RSI on intraday charts resets quickly. Daily RSI is slower and better suited to swing traders reviewing Nordic equities after the cash close.
Combine, do not isolate
RSI works best with structure: trendlines, moving averages, and clear risk reward. NordTraders does not publish an idea because RSI touched 30. Math and philosophy gates must agree first.