The RSI rule uses the Relative Strength Index for mean-reversion style entries.
For the indicator formula, see RSI — Formula.
Signals
| Condition | Signal |
|---|---|
| RSI < oversold | Buy |
| RSI > overbought | Sell |
Default parameters
| Parameter | Default |
|---|---|
| period | 14 |
| oversold | 30 |
| overbought | 70 |
Where to use it
All signal sections and as a directional filter. Counter-trend classified.
Tips
- In strong trends, tighten thresholds or use filters so you do not fade momentum blindly.
- invert swaps buy/sell for momentum-following RSI logic.
Example
Period 14, oversold 30, overbought 70 on a ranging ALT/USDT 1h. RSI 27 → buy. RSI 74 → sell. In a strong uptrend, consider oversold 40 / overbought 80 so you do not short every minor pullback.