Overbought or Oversold


2nd Lieutenant
What settings does everybody use on their RSI indicator? 70/30 or 80/20 or something else?
Well basically there is a tradeoff between rate of occurrence (of overbought and oversold states) and quality of the signal. For example 70/30 would naturally appear more frequently but you may get higher number of false signals. 80/20 or even extreme 90/10 works pretty good but they are rare especially on higher timeframes so you kind of lose in waiting time.