FAQ


What is RSI?

RSI (Relative Strength Index) is a popular technical indicator used to measure the strength and speed of a price movement. It helps traders identify when an asset might be overbought or oversold by comparing recent gains and losses.

The RSI value ranges from 0 to 100 — values above 70/80 often suggest overbought conditions, while those below 30/20 indicate oversold ones. In simple terms, RSI helps you spot potential trend reversals or confirm the current momentum. It's a handy tool for making more informed trading decisions.

How is the RSI used in heatmap calculated?

The RSI used in the heatmap is not smoothed. For calculations, we use data from the last 14 candles. Therefore oscillator is more sensitive and our RSI may differ from other platforms.

The formula

We use simplified RSI equation as presented in this article.

RSI equation
Where:

  • CU (Close Ups) - the sum of the difference in closing prices over the observation period where that difference is positive,
  • CD (Close Downs) - the sum of the difference in closing prices during the observation period where that difference is negative, but the sum is expressed as a positive number.