Editing Relative strength index (section)

===Overbought and oversold conditions===

Wilder thought that "failure swings" above 50 and below 50 on the RSI are strong indications of market reversals.<ref>{{cite web|title=RSI|url=http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:relative_strength_index_rsi|website=StockCharts|publisher=StockCharts.com|access-date=29 June 2016}}</ref> For example, assume the RSI hits 76, pulls back to 72, then rises to 77. If it falls below 72, Wilder would consider this a "failure swing" above 70.

Finally, Wilder wrote that chart formations and areas of support and resistance could sometimes be more easily seen on the RSI chart as opposed to the price chart. The center line for the relative strength index is 50, which is often seen as both the support and resistance line for the indicator.