00:00There's no single best RSI level for selling.
00:03The standard threshold is 70, but its reliability depends entirely on market conditions and
00:09time frame, and treating any fixed number as a guaranteed sell signal is a common and
00:14costly mistake.
00:15Here's how the levels actually differ.
00:171.
00:18RSI 70 is the classic overbought threshold from Wilder's original 14-period formula.
00:24Works reasonably in range-bound or moderately trending markets, but in strong uptrends
00:29price, can hold above 70 for weeks, so selling here means exiting far too early.
00:352.
00:36RSI 80 is a stricter threshold used in high-momentum assets, like crypto or growth stocks, precisely
00:42because 70 triggers too many false signals and volatile trends.
00:47This filters noise but sacrifices.
00:49Earlier entries.
00:513.
00:52RSI 3070 with divergence.
00:54Price makes a higher high while RSI makes a lower high.
00:57is considered more reliable than the raw threshold alone, since it signals weakening momentum
01:02rather than just high price.
01:054.
01:05Shorter RSI periods, 7-9, react faster and suit day trading-slash-5-15-minute charts, while
01:13the standard 14-period suits daily-slash-swing charts.
01:16Shorter periods hit extremes more often but generate more false signals.
01:21Context matters heavily.
01:23In a strong bull trend, waiting for RSI over 80 with bearish divergence reduces false exits.
01:29In sideways-slash-ranging markets, 70 works fine on its own, on higher timeframes, daily-slash-weekly.
01:36Extremes are rarer but more significant.
01:39I don't have verified, current back-tested win-rate statistics for these specific thresholds across
01:44asset classes, so avoid trusting any source that cites a precise,
01:49X-percent accuracy figure without showing methodology.
01:53Practical takeaway.
01:54Don't sell on RSI 70 alone.
01:56Combine it with trend direction, divergence, and volume confirmation,
02:00and adjust the threshold, 70 versus 80,
02:04based on the asset's typical volatility before committing to a fixed rule.
02:08Finally, remember that everything we discussed today is for educational purposes only
02:13and does not constitute financial advice.
02:16Good luck to everyone, and see you in the next video.
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