Relative Strength Index (RSI)

https://www.tradingview.com/wiki/Relative_Strength_Index_(RSI)

Overbought/Oversold

• any number above 70 should be considered overbought and
  any number below 30 should be considered oversold.

Divergence

• Bullish Divergence only occurs in a Bearish Trend.
• Bearish Divergence only occurs in an Bullish Trend.

Failure Swings: completely independent of price and rely solely on RSI.

• Bullish Failure Swing (buying opportunity)

RSI drops below 30 (considered oversold).
RSI bounces back above 30.
RSI pulls back but remains above 30 (remains above oversold)
RSI breaks out above its previous high.

• Bearish Failure Swing

RSI rises above 70 (considered overbought)
RSI drops back below 70
RSI rises slightly but remains below 70 (remains below overbought)
RSI drops lower than its previous low

Reversals

• Positive Reversal occurs when price makes a higher low while RSI makes a lower low. Price proceeds to rise. Positive Reversals only occur in Bullish Trends.

• Negative Reversal occurs when price makes a lower high while RSI makes a higher high. Price proceeds to fall. Negative Reversals only occur in Bearish Trends