RSI in sideways markets


  • Sideways market: use the RSI to identify tops and bottoms.  The RSI 14 usually tops above 70 and bottoms below 30

  • However overbought/ oversold levels may vary depending on the security

  • Check on the chart to see where the RSI topped or bottomed in the past.  The chart on the right shows the RSI 14 peaking above 55 and bottoming below 40

RSI14_example.gif (12654 bytes)