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Answer:
Hi,
Could you tell us which currency pair you are talking about?
But in any case, to understand why an indicator act the way it acts, you have to understand how it works:
RSI is an oscillator (its values oscillate in a range, in this case [0;100]), that calculates a ratio between the average of recent gains and the average of the recent losses.
In simpler terms, if the global trend is UP (more candles going up than going down), the RSI will have a high value, while when the trend is DOWN, the RSI value will be low.
The theory behind the indicator is that trends never last, and that the value tends to be over-valuated, leading to a market correction (the price goes to the opposite direction soon after it reaches this "overbought" or "oversold" condition). (this is a really simplistic explanation, it's a little more complex in reality)
If the RSI stays in the extremes, that means the trend is strong and not weakening. If this trend is not cause by a major economic event, you should expect a trend reversal as soon as the current trend starts to weaken.
If you are planning to use this indicator for your trading, you might want to read "New Concepts in Technical Trading Systems" by J. Welles Wilder. It's an old book, but it's worth the read! It's in this book that Wilder, the creator of the RSI, explained how the RSI works.
