Short answer
RSI compares smoothed price gains and losses on a scale from 0 to 100. A reading below 30 is conventionally called oversold; it does not by itself establish a future reversal.
Measurement and interpretation
The lookback changes sensitivity. Extremes can persist in a sustained trend. Divergence is a difference between price and indicator behavior; its presence is not proof of a profitable strategy.
What question does DAO ask?
Planned question: does subsequent movement after RSI below 30 differ from a matched baseline? Until reviewed data exists, that question remains open.
Boundaries
This explains a definition, not a DAO research result. No reviewed comparison of crypto and equities, timeframes, or RSI and MACD is presented here. These questions remain in the validation plan.