What is Relative strength index (RSI)?

The Relative Strength Index, or RSI, is like a scoreboard that tells you if something is getting too strong or too weak.

Imagine you're playing a game with your friend where you take turns pushing a shopping cart back and forth. If you push the cart really hard for a while, it's like the cart is getting stronger, but if you keep pushing it without letting your friend catch up, eventually, you might get tired or make a mistake.

That’s what RSI does in the world of money stuff. It checks how much something goes up compared to how much it goes down over time. If it keeps going up a lot, the RSI says "Hey, this is getting too strong!", like you pushing the cart too much. If it drops a lot, the RSI says "This might be getting too weak!"

People use RSI to help decide when to buy or sell things like stocks or toys in a store, just like how you’d know when to rest after pushing that shopping cart too long!