01Entry idea
Classic oversold bounce
A mean-reversion long entry for ranging markets, triggered when momentum turns back up from oversold.
MomentumExpert Curated · Playbook
RSI
Relative Strength Index
A momentum oscillator that measures the speed and magnitude of recent price changes on a bounded 0–100 scale.
The Relative Strength Index (RSI), developed by J. Welles Wilder, compares the magnitude of recent gains to recent losses over a chosen lookback (typically 14 bars). Readings above 70 are conventionally "overbought," below 30 "oversold" — but the real power of RSI lies in how it behaves inside those zones and in divergence against price.
In strong trends, oversold and overbought levels shift: an uptrend may respect RSI 40 as support and push well above 70 without reversing. Treat RSI as a relative measure of momentum rather than a mean-reversion trigger on its own.
How to get in
Entry ideas
03ideas
02Entry idea
Trend-following pullback
A trend-aligned long entry that buys pullbacks to the mid-range of RSI during confirmed uptrends.
03Entry idea
Bullish RSI divergence
A reversal-anticipation entry that spots waning downside momentum before the price turns.
How to get out
Exit ideas
03ideas
01Exit idea
Overbought exit
A momentum-peak exit that locks gains when the oscillator signals stretched upside.
02Exit idea
Momentum failure
An early exit that cuts trades losing steam before they reach overbought.
03Exit idea
Bearish divergence exit
A proactive exit triggered when rising price fails to produce rising momentum.
Other things it's good for
Utilities
02ideas
01Utility
Trend-strength filter
A bias filter that keeps trades aligned with prevailing momentum, improving any directional system.
02Utility
Range-regime detection
A regime detector that flags ranging markets so trend systems can stand aside.