RSI above 70 in a strong uptrend:

Can persist. Trends can stay overbought.

The default RSI period is:

14. RSI is typically 14 periods.

Warning needing confirmation. Confirm with structure.

RSI: Relative Strength Index

A 0 to 100 oscillator that measures the speed of price moves.

RSI compares average gains to average losses over 14 periods and scales the result from 0 to 100. Readings above 70 are often called overbought and below 30 oversold.

In strong trends RSI can stay above 70 or below 30 for a long time, so overbought does not mean sell. Many traders use 40 to 90 as the bullish range and 10 to 60 as the bearish range.

RSI divergence, where price makes a new extreme but RSI does not, is a useful warning. Confirm with price structure.

Key takeaways

RSI scale is 0 to 100, default 14 periods
Overbought is not an automatic sell signal
Divergence is a warning, not an entry

Quiz

RSI above 70 in a strong uptrend: Answer: Can persist. Trends can stay overbought.
The default RSI period is: Answer: 14. RSI is typically 14 periods.
RSI divergence is a: Answer: Warning needing confirmation. Confirm with structure.

Educational content, not financial advice.