Discover our technical indicator strategies to optimize your trades
RSI measures speed and magnitude of price movements. It oscillates between 0 and 100 and identifies overbought (>70) and oversold (<30) conditions.
Used to detect trend reversals and optimal entry/exit points.
RSI < 30 then rises above 30
RSI > 70 then falls below 70
When price and RSI move in opposite directions
Buy: RSI < 25 : RSI < 25
Sell: RSI > 75 : RSI > 75
For patient traders who prefer rare but highly reliable signals. Ideal in volatile markets.
Buy: RSI < 30 : RSI < 30
Sell: RSI > 70 : RSI > 70
The classic recommended strategy for beginners. Good compromise between frequency and reliability.
Buy: RSI < 40 : RSI < 40
Sell: RSI > 60 : RSI > 60
For active traders seeking more opportunities. Requires strict risk management.
In strong bull market: use 40/80 instead of 30/70. In bear market: use 20/60. RSI must adapt to context!
If price makes new high but RSI doesn't = bearish divergence (sell signal). Opposite for bullish divergence = strong buy signal!
RSI alone can give false signals. Always confirm with: Volume (important!), Support/Resistance, MACD or EMA. Triple confirmation = Solid trade.
Check RSI on multiple timeframes: if RSI 1H and 4H are aligned in oversold = VERY strong signal. Never trade against the higher timeframe trend!
In strong trend, RSI can stay > 70 for long. Wait for confirmed reversal!
RSI at 30 in strong decline can still drop to 10. Look at overall trend first!
Try RSI 7 (more reactive) or RSI 21 (more stable) depending on your trading style!
