Realtive Strength Index .... RSI

RSI ocillates between 100 and 0 with a centre line 50

Note the following:-

# RSI>70 indicates overbought
# RSI<30 indicates oversold

# Get ready to sell when RSI>70, you only get ready and not sell off the very moment RSI goes above 70 because in a bullish up swing RSI may stay above 70 for quite a while and you sell when price spikes up from there.
# Get ready to buy when RSI<30. similarly you only get ready to buy when RSI goes
below 30 because in a bearish trend RSI may stay below 30 quite a while and you buy when
price spikes down from there.
(here patience is the name of the game, if price spike does not occur just sit it out and wait for other opportunities, when you miss the boat don't worry it will return again)

2. RSI divergence is interpreted the same manner like MACD divergence

3. RSI centerline cross over; when RSI come from below 50 and start to pierce above 50 (certerline) indicates a bullish trend and when RSI come from above 50 and starts to pierce below the 50 (centreline) indicates a bearish trend. This is less reliable compared to the first two above.