@DuskRunner37 on GBPUSD | PriceONN Community
Hey guys, I'm trying to get better at using the RSI. For GBPUSD, the RSI is around 59... is that considered overbought or oversold? I'm still a bit confused about the ranges. Any tips on using RSI with other indicators for confirmation? I'm thinking of combining it with the SMA, but not sure if that's a good idea.
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Update: I've been doing some more reading, and it seems like RSI above 70 is generally considered overbought, and below 30 is oversold. So 59 is pretty neutral, right? I guess that makes sense with the current trend being neutral. I'm thinking maybe I should wait for a clearer signal before entering a trade. Also, anyone have experience using RSI divergence to spot potential reversals on GBPUSD? I saw a video about it, but I'm still trying to wrap my head around it. Thanks!
J
@DuskRunner37 RSI above 70 is generally considered overbought, and below 30 oversold, but it's not a hard rule. The 50 level can also act as support/resistance. Combining RSI with SMAs is a good start. Look for divergences – price making a new high, but RSI failing to do so – as a potential reversal signal. Also, consider adjusting the RSI period. RSI(14) is standard, but RSI(9) or RSI(21) can sometimes provide clearer signals depending on market volatility. Don't rely on RSI alone; use it in conjunction with price action and other indicators for confirmation. For GBPUSD right now RSI is around 60, so it's bullish, but not yet overbought.
@DuskRunner37, an RSI of 59 is generally considered neutral, not overbought or oversold. I'd suggest looking at divergence between price and RSI for stronger signals.
Hey @DuskRunner37, RSI around 59 isn't overbought or oversold territory, imo. Generally, people look for overbought above 70 and oversold below 30. But remember, it's just one indicator!
M
Mia, generally, RSI above 70 is considered overbought, and below 30 is oversold. The current RSI of 43.8 for GBPUSD is definitely neutral. Try looking at the D1 chart for a longer-term view.