It utilises a simple mathematical formula. Unlike other technical indicators, the arithmetic behind RSI is simple enough that traders may compute it by hand if necessary. Although a live chart that visually monitors RSI is normally preferred, traders may take confidence in knowing exactly what these ideas are founded on.
It enables basic chart analysis. Because the overbought and oversold levels of the RSI are clearly defined, the indicator is easy enough for even beginner traders to use while being precise and insightful enough for expert traders to rely on.