Kairos™

RSI - Relative Strength Index

The Relative Strength Index (RSI) calculates a ratio of the recent upward price movements to the absolute price movement.  The RSI ranges from 0 to 100.  The RSI is interpreted as an overbought/oversold indicator when the value is over 70/below 30.  You can also look for divergence with price.  If the price is making new highs/lows, and the RSI is not, it indicates a reversal.  

Relative Strength Index (RSI) on the Daily Timeframe, with a Period of 14

Relative Strength Index (RSI) displayed on a daily chart of ^GSPC