hope to not tread on any toes but I'll have a goThere are a...

hope to not tread on any toes but I'll have a go

There are a couple of things to be understood about RSI. RSI, like most indicators works on a number of historic bars, and its value is therefore determined on historic price movement from those bars. In this case we have a period (or bars) of 14. So in the absence of adhoc events, this 'should' work OK, but a lot can happen in a few weeks. A shorting attack will render the previous 14 bars history largely irrelevant (unless it being an indicator for the shorters to start shorting).

If you throw a standard RSI on a chart you'll notice it does NOT oscilate very quickly. Generally over 60 is bullish with 70 overbought, and the reciprocate is bearish with 40 bearish and 30 being oversold.

The RSI Band chart is somewhat similar to RSI, but it is more graphical. Those 2 Bands indicate the price where Oversold and Overbought would occur. In other words when the RSI touches 70, the price would be touching the upper band also. It is very visual! Even cooler is you can see when the price is likely to become overbought, by observing how close the price is to that upper band.

If those bands are rising, then the likely price for being overbought and oversold are rising. *
If those bands are declining, then the likely price for being overbought and oversold are falling. *
If those bands are shrinking or expanding it indicates a narrower trading range or a larger trading range.

The standard RSI indicator tells you the same data, expect it is less visual. If your standard RSI chart is at 70 then the RSI bands on your main chart would touch the upper band, RSI around 65 would indicate the price is close to touching the upper band.

* The caveat however is how to interpret the RSI. An RSI of 65 is strong, BUT if the previous 2 bars are higher, lets say 68,66, then I would read this as a decline in price is in progress - its interpretation. This is what happens in the box you highlighted on that chart, and well spotted. You can see the price over previous bars kept touching the upper band (which tells you the RSI was high during those bars). Then something hit the fan and the price started collapsing. The RSI would have dropped over several bars (70, 68, 66 etc) - which are still bullish RSIs and based on that, the upper and lower bands continued to rise for some time.

DYOR: Happyh to be corrected