How-to RSI indicator

How to use RSI on Kite

From WebNotes, a public knowledge base. Last updated . Reading time ~3 min.

RSI (Relative Strength Index) is one of the most popular momentum oscillators. Developed by Welles Wilder; default 14-period. Useful for spotting overbought / oversold conditions and divergences.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with Zerodha. No affiliate commission is earned.

Market-risk disclaimer. Trading involves risk. Indicators are tools, not guarantees.

Step-by-step procedure

See the procedure infobox above for the seven steps.

RSI formula

RSI = 100 - (100 / (1 + RS))

Where RS = average gain / average loss over the period.

Common pitfalls

  • Overbought ≠ sell: In strong uptrends, RSI can stay >70 for days.
  • Oversold ≠ buy: In strong downtrends, RSI can stay <30 for days.
  • Period sensitivity: 7-period RSI gives many false signals; 21-period misses fast moves.

See also

External references

References

  1. Welles Wilder Jr., New Concepts in Technical Trading Systems, 1978.
  2. Zerodha support documentation on RSI indicator.
  3. Varsity technical analysis module on RSI.

Related articles

  • How to add indicators on Kite charts

    Step-by-step procedure for adding technical indicators on Zerodha Kite charts. Covers TradingView and ChartIQ workflows, parameter …

  • How to use Bollinger Bands on Kite

    Step-by-step procedure for using Bollinger Bands on Zerodha Kite charts. Covers default 20-period 2-SD setting, squeeze, expansion, and the …

  • How to use MACD on Kite

    Step-by-step procedure for using MACD (Moving Average Convergence Divergence) on Zerodha Kite charts. Covers default 12-26-9 setting, signal …

  • How to use Supertrend on Kite

    Step-by-step procedure for using the Supertrend indicator on Zerodha Kite charts. Covers ATR-based computation, default parameters (7, 3), …

  • How to use VWAP on Kite

    Step-by-step procedure for using VWAP (Volume Weighted Average Price) on Zerodha Kite charts. Covers intraday VWAP, anchored VWAP, intraday …

  • How to use RSI on Kite

    Step-by-step guide to applying the Relative Strength Index (RSI) on Zerodha Kite charts, choosing the period, interpreting …

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed
Conflicts of interest
WebNotes is independent. No relationship with any broker, registrar or bank named in this article.