Yet enough anomalies piled up in recent years to crack the andd of the random walk. Relative Strength Index (RSI):The RSI measures the ratio of up-moves to down-moves and normalizes the calculation so that the index is expressed in a range of 0-100. If the RSI is 70 or greater, then the instrument is assumed to be overbought (a situation in which prices have risen more than market expectations). An RSI of 30 or less is taken as a signal that the instrument may be oversold (a situation in which prices have fallen more than the market expectations).
Conversely, as prices fall in a strong down trend, closing prices tend to be near to the extreme low of the period range.