RSI is versatile and popular trading indicator used by Forex traders to identify when a currency pair is oversold or overbought. When a Forex currency pair is overbought, it is like a racecar whose engine is red-lining as it is being pushed to the limit by its driver. Eventually, if the driver does not let up off of the accelerator, the engine blows up and the car slows down to a standstill. Currency pairs can continue to make new highs even though they are in an overbought condition as traders continue to bid a currency pair up. RSI is like the tachometer on a car’s dashboard that monitors this momentum. As traders, ... (full story)