RSI Trading Strategy

📘 What is RSI?

RSI (Relative Strength Index) is an indicator that shows the strength of the market.
It measures whether an asset is overbought (the price is too high) or oversold (the price is too low).

🔧 How RSI works?

RSI moves between values from 0 to 100
💥 70 and above — the asset is overbought → possible reversal downward
🧊 30 and below — the asset is oversold → possible reversal upward

The indicator helps avoid entering a position at the top or bottom, and instead find a better entry point

📊 How to add RSI?

Trading platform: PocketOption

Open the asset chart
Go to the "Indicators" tab
Select the RSI indicator
The indicator is set up automatically

📈 RSI Trading Strategy: Reversal from Overbought/Oversold Zone

☑️ Conditions for entering a long position:

RSI drops below 30
Confirmation appears in the form of a structure break on the M1 timeframe
Enter on the next candle
Expiration time: 7–15 minutes

☑️ Conditions for entering a short position:

RSI rises above 70
Confirmation appears in the form of a structure break on the M1 timeframe
Enter on the next candle
Expiration time: 7–15 minutes

📉 What is RSI Divergence?

Divergence is a mismatch between price and the indicator. It signals a possible reversal.
🔺 Bullish Divergence

Price forms lower lows
RSI forms higher lows
➤ Signal: buyers are gaining strength — possible upward reversal

🔻 Bearish Divergence

Price forms higher highs
RSI forms lower highs
➤ Signal: momentum is weakening — possible downward reversal

💡 Watch for candlestick formations (such as market shift, increased volume, strength of the move) during divergence — this increases the accuracy of the signal.

💡 Tips:

Don’t trade RSI in isolation — watch support/resistance levels, rebalancing zones, and shifts in market structure
RSI works best on M15–H4 timeframes
Avoid trading during news events — RSI often gives false signals in high-volatility conditions
Combine RSI with other tools
Pay attention to the logic behind price delivery

✅ Conclusion

RSI is a powerful yet simple indicator. It helps you avoid entering “against the trend” and find entry points with a high probability of a bounce.
With practice, you'll start to see not just the values, but also how the market behaves around RSI zones.

You can see the practical use of RSI in my videos on YouTube:

Remember, you need to test this strategy before applying it in the live market.

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Trading platform: https://u3.shortink.io/register?utm_campaign=796786&utm_source=affiliate&utm_medium=sr&a=aulfd5dhjORsSI&ac=g1&code=BWGPROMO60