StockYanRSI in one sentence
RSI stands for Relative Strength Index. It compares the size of recent up days with the size of recent down days and turns that into a number between 0 and 100.
When a stock has mostly gone up lately, RSI is high. When it has mostly gone down, RSI is low. Most charts look back over the last 14 trading days, and so does StockYan.
What the numbers mean
Three lines matter most on an RSI chart: 30, 50 and 70. You will see them drawn as guides on most RSI charts.
- Above 70: the price has risen fast. Traders call this overbought.
- Below 30: the price has fallen fast. Traders call this oversold.
- Around 50: up days and down days are roughly balanced.
- Above 50 leans up. Below 50 leans down.
Overbought does not mean sell
A high RSI only says the price rose quickly. Strong stocks can stay above 70 for weeks, and weak stocks can stay below 30 for a long time.
So many traders treat RSI as a prompt to look closer. A reading of 75 asks a question: is this rise backed by volume and good results, or are buyers running out?
RSI divergence
Divergence is when price and RSI disagree. If the price makes a new high but RSI makes a lower high, the push upward is getting weaker. If the price makes a new low but RSI makes a higher low, the selling is getting weaker.
Divergence is rare and it can fail. Treat it as an early warning to watch the chart more closely.
Watch out for bonus shares
In NEPSE, a bonus share book closure makes the price drop in one day even though nothing bad happened. The company simply split the same value across more shares.
An RSI worked out on raw prices sees that drop as heavy selling. StockYan works out RSI on prices adjusted for bonus and right shares, so the number reflects real buying and selling.
How to use RSI on NEPSE
RSI is one tool among several. These habits help it make sense.
- Read RSI with the price chart, never alone.
- Check volume. A move on high volume means more.
- Use support and resistance to see where price may pause.
- Compare a stock's RSI with its own past readings.
RSI in StockYan
Every stock page in StockYan shows its RSI. The RSI scanner lists all NEPSE stocks by RSI, shows which ones crossed 30 or 70 today, and flags divergence.
A NEPSE example
Nabil Bank (NABIL) closed at Rs 542 on 27 Oct 2026. Its 14-day RSI that day was 61.58, above the 50 midline, so recent up days outweighed down days.
A month earlier the reading was higher. On 24 Sep 2026 NABIL's RSI was 73.95, above 70. By 5 Oct it had fallen to 47.64. It then climbed back to 72.02 on 16 Oct before easing to 61.58.
On 30 Sep 2026, NABIL's book closure for a 5% bonus share took place. The raw price fell from Rs 566 to Rs 530.70 that day, which looks like a 6% drop. After adjusting for the bonus, the real move was a fall of about 1.5%.