The RSI with region crossovers is simply the RSI, but used in a different way. As it’s described in the Relative Strength Index video, the RSI gives a buy signal when it’s in oversold and a sell signal when it’s overbought. However, with this indicator this works slightly different.

It has two modes: Signal on region IN (default) and Signal on region OUT.

Signal on region IN:

Instead of, for example, signaling a buy when the RSI is oversold, it will only signal a buy when the RSI goes from the oversold zone back into the neutral zone. That is, when the RSI crosses the oversold limit and becomes neutral again.

In this way, a buy signal is generated once the RSI starts recovering positive momentum and the price has already started going up. The same logic applies to sell signals.

Signal on region OUT:

Instead of, for example, signaling a buy when the RSI is oversold, it will only signal a buy when the RSI goes from the neutral zone to the oversold zone. That is, when the RSI crosses the neutral limit and becomes oversold.

In this way, a buy signal is generated once the RSI is falling very quickly. The same logic applies to sell signals.