RSI Bands

RSI bands provide an intuitive and visual method of understanding how price movements influence the Relative Strength Index (RSI) within its bounded range of 0 to 100. The upper and lower bands typically represent key thresholds—commonly set at 70 and 30—which signal potential overbought or oversold conditions. When RSI approaches or crosses these bands, it may indicate that a reversal or pullback is likely, helping traders identify potential entry or exit points. By plotting these bands on a chart, traders gain clearer insight into momentum strength and trend sustainability, enhancing their ability to make informed decisions based on market dynamics and RSI behavior.