http://en.wikipedia.org/wiki/Relative_Strength_IndexAs you can see from the chart, the RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.
![](https://ip.bitcointalk.org/?u=http%3A%2F%2F52.imagebam.com%2Fdownload%2FfSqsaATPWCxz39JB82yZ0A%2F16843%2F168425123%2F%2520Charts_1325915677505.png&t=663&c=fndQ_MfKNkTABA)
in the last 5 days someone pay way to much for bitcoins,
why ? Because a longer term indicator told them it was still a good price.