What is the RSI?
The Relative Strength Index (RSI) is an oscillator that measures the speed and magnitude of price movements. It ranges from 0 to 100. Above 70 signals overbought conditions (a possible drop); below 30 signals oversold conditions (a possible rise).
Configuration
Standard setting: RSI(14). For short-term binary options: RSI(7) or RSI(9) for faster signals.
Strategies for binary options
Overbought/oversold: RSI > 70 → possible PUT. RSI < 30 → possible CALL.
Divergences: if price makes new highs but the RSI does not → bearish divergence (PUT). If price makes new lows but the RSI does not → bullish divergence (CALL). Divergences are powerful signals.
The 50 level: the RSI crossing 50 from below is bullish; from above is bearish.
⚠️ Caution
Don’t trade on overbought/oversold alone. In strong trends the RSI can stay in an extreme zone for a long time. Always confirm with price or the Bollinger Bands.