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Tips on Adjusting the RSI (Part 2)

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Although the standard setting for the RSI is 70 (overbought) and 30 (oversold), I prefer to adjust the levels to 80 and 20. The purpose of this is to identify the extremely overbought/oversold regions.

In addition to adjusting the levels, I would pay attention to the chart when the RSI enters in the overbought/oversold region (but would hold back on entering a trade)

I would only enter a trade when the RSI turns down/up from the overbought/oversold region.

This would signal that the price is likely to fall/rise as the RSI reverses from the extremes and back within range.

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