Knowledge center · Technical analysis
RSI (14)
Relative Strength Index — how one-sided the last 14 days of gains vs losses have been, on a 0–100 scale.
Formula
RSI = 100 − 100 / (1 + avg gain / avg loss), Wilder-smoothed over 14 days.
Interpretation
Above 70 the recent advance has been unusually one-sided (overbought); below 30, unusually one-sided selling (oversold). Between 40–60 it says little.
What good looks like
Oversold readings (<30) inside an intact uptrend often mark tactical entry points.
What bad looks like
Overbought readings (>70) after a long advance flag near-term pullback risk — they do not, alone, end trends.
Typical range
0–100; most of the time between 30 and 70.
Limitations
In strong trends RSI can stay pinned above 70 (or below 30) for weeks — “overbought” is not a sell signal by itself.
How OmniSignal uses it
The most widely used mean-reversion gauge; extremes are genuinely informative about short-term risk/reward.
Where it enters the score
An RSI z-score is a display-adjacent input to the engine’s reversal sleeve, which only carries weight (0.20) in high-volatility regimes; elsewhere it is display-only.
References
Wilder (1978), New Concepts in Technical Trading Systems
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