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Best RSI Level to Sell? Here's why the "RSI 70 rule" fails more often than traders think.

If you've ever sold a trade the moment RSI hit 70 — only to watch the price keep climbing for another two weeks — you're not alone. This video breaks down why there's no single perfect RSI overbought level, and how the right threshold actually changes depending on the market you're trading, the timeframe you're using, and how strong the trend is. We go beyond the textbook 70 number and show you how professional traders actually read RSI in real market conditions.

Here's what you'll learn:

- Why RSI 70 works in ranging markets but fails badly in strong trends
- When to use RSI 80 instead (and why it's common in crypto and high-momentum stocks)
- How bearish divergence makes RSI signals far more reliable than the raw number alone
- The difference between short-period RSI (7-9) for day trading and standard 14-period RSI for swing trading
- How trend direction and volume confirmation should factor into any RSI-based sell decision
- Why chasing a fixed RSI rule without context is one of the most common mistakes new traders make

Understanding RSI overbought levels isn't about memorizing "70" or "80" — it's about knowing which conditions make each threshold reliable, and which conditions make it dangerous. We also explain why you should be skeptical of any source claiming an exact win-rate percentage for a specific RSI level without showing real methodology.

If you're tired of guessing when to exit a trade, this video will change how you read RSI completely — watch until the end, and let us know in the comments which RSI setting you currently use. If this helped, a like and subscribe supports more content like this.

#RSIIndicator #TechnicalAnalysis #TradingStrategy #StockMarket #DayTrading #SwingTrading #TradingTips #ForexTrading

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Transcription
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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