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RSI Overbought / Oversold

Classic TA

Buy fear, sell greed, but wait for the turn, not just the number.

how rsi overbought / oversold works
70 overbought30 oversoldRSI < 30 → BUYprice

What it does

The Relative Strength Index scores the last 14 candles of gains vs losses from 0–100. Under 30 is oversold, over 70 overbought, but price can stay stretched for a long time, so a bare RSI cross is a knife-catch. This version waits for the RSI to actually hook back, for price to be pinned against the Bollinger band, and for a reversal candle to confirm the snap-back.

How it works

  1. 1Plot RSI(14) in the sub-pane with the 30 / 50 / 70 lines.
  2. 2Confirm 1: RSI in the extreme zone. Confirm 2: RSI hooking back toward the mean.
  3. 3Confirm 3: price pinned at the far Bollinger band. Confirm 4: a reversal candle prints.
  4. 4Confirm 5: price isn't in free-fall (within ~3 ATR of the 20-SMA), to avoid catching a trend.