FOREX THEORY
Relative Strength Index (RSI) (Part 2)
However, RSI is also good for seeing how long a trend has
been overbought or oversold. A common indication of whether a market is
overbought is if the RSI is above 70. On the flipside, a common indication of
whether a market is oversold is if the RSI is below 30.
Because trends are movements in the same direction for an
extended period of time, you will often see RSI move into overbought/oversold
territory, depending on the direction of the trend.
If a trend has produced oversold or overbought readings for
an extended period of time and begins to move back within the range of the RSI,
it is a good indication that the trend may be reversing.
 (Part 2) However, RSI is also good for seeing how long a trend ...){kind=link}
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