RSI Strategy
Trade using RSI overbought/oversold conditions.
Setup
Components
- RSI (14)
- Support/resistance
- Trend confirmation
Timeframe
- Daily for swing
- 4H for intraday
Rules
Long Entry
1. Trend up (higher highs)
2. RSI < 30 (oversold)
3. Price at support
4. Confirmation → BUY
Short Entry
1. Trend down (lower highs)
2. RSI > 70 (overbought)
3. Price at resistance
4. Confirmation → SELL
Stop & Target
| Element | Value |
|---|---|
| Stop | Below swing low |
| Target | 2:1 reward/risk |
Common Mistakes
1. Trading RSI Alone
Fix: Use with support/resistance
2. Fighting Strong Trends
Fix: Only trade with trend
Key Takeaways
- RSI — Momentum indicator
- Support/resistance — Confirms entry
- Confirm — Don’t anticipate
- Trend first — Trade with trend
Related
rsi.md >>>
RSI finds reversals. Confirm with price.