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RSI Alert

RSI Alert Strategy - Regime-Dependent Thresholds & False Signal Prevention

How to Set Up (3 Steps)

  • Step 1: Search for any stock on StockAlert.pro (e.g., PLTR, SHOP, DKNG)
  • Step 2: Select "RSI Threshold" and choose your threshold (30 for oversold, 70 for overbought - adjust for regime)
  • Step 3: Choose notification method (email or SMS) and save

Done! You'll receive automatic alerts when RSI crosses your threshold. Remember: adjust thresholds for market regime (40/80 in bull markets, 20/60 in bear markets).

Example: Palantir Bull Market - Q4 2023

  • Setup: PLTR rallied from $16 to $20 in November 2023, hitting RSI 72 - classic 'overbought' signal
  • Signal: Price >50MA (bull regime), AI hype catalyst, strong volume - RSI 70 threshold inappropriate
  • Alert Trigger: Traders using classic RSI 70 sold at $20, expecting reversal
  • Result: PLTR continued to $27 by January 2024 (+68% from $16 entry), RSI stayed >50 throughout
  • Key Insight: Bull regime requires adjusted thresholds (80/45, not 70/30) - classic RSI caused 35% missed gain

Scenario Guide

ScenarioRegimeRSI LevelExampleAction
Bull OversoldPrice >50MARSI 40-50PLTR dips to RSI 45 in uptrendBuy - regime-adjusted oversold
Bull OverboughtPrice >50MARSI >80Extended after RSI 80+ sustainedTrim 25-50%, keep core
Bear OversoldPrice <50MARSI <25Capitulation RSI 22 + volumeWait for stabilization first
Sideways RangePrice flatRSI 30/70RSI oscillates classic levelsTrade mean reversion 30/70
Divergence SetupAnyHigher low/lower highPrice new low, RSI higherHigh probability reversal signal

When to Use

  • You want to buy pullbacks in uptrends when RSI reaches regime-adjusted oversold (40-50 in bull)
  • You need sell signals when momentum exhausts in sideways markets (classic 70)
  • You're combining RSI with other alerts (volume, MA) for confirmation layers

When Not to Use

  • Using standard 30/70 in strong trends (fails 40-60% of the time)
  • Buying RSI 30 in bear markets without structure confirmation (catching knives)
  • Trading RSI alone without volume or price structure confirmation

Conclusion

RSI alerts are only as good as the regime awareness behind them. The 30/70 defaults work in sideways markets. In trends, they fail catastrophically. Master regime identification, add volume/structure confirmation for high-probability setups.

Community Alerts

50 alerts
AAPLactive
Threshold
30
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Jan 6, 2026
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70
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30
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30
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70
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30
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70
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70
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70
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MSFTactive
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30
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70
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70
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70
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30
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30
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70
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30
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30
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KOactive
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30
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DRMAactive
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30
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PLTRactive
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30
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30
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DOCUactive
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30
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30
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70
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70
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70
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30
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Threshold
70
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URGactive
Threshold
70
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30
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PLTRactive
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30
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30
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Jan 2, 2026

Frequently Asked Questions

Q:Fixed 30/70 vs. regime-basiert?
Fixed 30/70 funktioniert in Range-Märkten (60% Erfolgsrate). Regime-basiert ist besser: Bullenmärkte: RSI 40/80 (30 zu niedrig, starke Aktien selten so tief). Bärenmärkte: RSI 20/60 (70 zu hoch, schwache Aktien erreichen nie Overbought). Seitwärts: RSI 30/70 (klassisch). Adaptiv ist 15-20% erfolgreicher aber komplexer. Start mit 30/70, wechsel zu Regime wenn 200MA steigt (40/80) oder fällt (20/60).
Q:RSI(2) vs RSI(14)?
RSI(14) = Standard für Swing Trading (mehrere Wochen Haltedauer), glattere Signale, weniger False Positives. RSI(2) = Kurzfristig für Day/Swing Trading (Tage-Wochen), extrem empfindlich, mehr Signale aber auch mehr Noise. Empfehlung: RSI(14) für Positionsaufbau + RSI(2) für präzises Timing. Kombi-Regel: RSI(14) <30 + RSI(2) <10 = hohe Wahrscheinlichkeit für Rebound in 1-3 Tagen. RSI(14) Haupt-Filter, RSI(2) für Entry-Timing.
Q:What RSI period should I use - 14, 7, or 2?
RSI(14) is standard for swing trading (hold 1-4 weeks). RSI(7) for active trading (hold 3-10 days). RSI(2) for day trading (hold 1-3 days). Shorter periods = more signals but more noise. Start with 14 and only shorten if you can commit to active monitoring.
Q:Why does RSI 30 keep failing in my trades?
You're in a bear market or strong downtrend. RSI 30 works in sideways markets. In downtrends, use RSI 20 as oversold threshold. Better yet: don't buy oversold signals against the trend. Wait for trend reversal confirmation (price above 50-day MA) first.
Q:Should I buy immediately when RSI hits 30 or wait for confirmation?
Wait for confirmation. RSI 30 is a screening alert, not an entry signal. Confirm with: (1) volume spike, (2) price holding prior support, (3) bullish divergence if available. Immediate buying at RSI 30 has ~45% win rate. With confirmation, it jumps to ~65%.
Q:What are the best RSI thresholds for bull vs bear markets?
Bull markets: 40-50 oversold, 70-80 overbought (trend continuation bias). Bear markets: 20-30 oversold, 60-70 overbought (avoid falling knives). Sideways markets: Classic 30 oversold, 70 overbought (mean reversion). Check 50-day MA slope to identify regime.
Q:How reliable are RSI divergences compared to threshold crosses?
Divergences win 15-20% more often. Bullish divergence (lower price low, higher RSI low) succeeds ~65% of time. Bearish divergence (higher price high, lower RSI high) succeeds ~60% of time. Regular threshold crosses: 50-55%. Always confirm divergences with price structure breaks before trading.
Q:Can RSI predict earnings moves or should I avoid using it around earnings?
RSI cannot predict earnings surprises - avoid relying on it within 2 days of earnings. However, RSI is excellent AFTER earnings: RSI 25 after earnings washout = strong buy signal (capitulation). RSI 75 after earnings beat = momentum continuation. Combine RSI with earnings alerts for best results.
Q:What's the difference between RSI(14) and RSI(2) strategies?
RSI(14): Swing trading, hold 1-4 weeks, thresholds 30/70, works in all regimes with adjustment. RSI(2): Day trading, hold 1-3 days, extreme thresholds 5/95, ONLY works in strong uptrends. RSI(2) fails catastrophically in bear markets (gives 10+ false buy signals as stock collapses). Use RSI(2) only in confirmed bull phases.
Q:How do I know if I'm in a sideways, bull, or bear regime?
50-day MA slope: Flat = sideways (use 30/70). Up >10° = bull (use 40/80). Down >10° = bear (use 20/60). Additional check: In bull regimes, RSI rarely drops below 40. In bear regimes, RSI rarely rises above 60. If RSI oscillates 30-70 frequently, you're sideways.
Q:Should I combine RSI with other indicators or use it standalone?
Always combine. RSI alone: ~51% win rate. RSI + volume confirmation: ~62% win rate. RSI + volume + price structure (support/resistance): ~68% win rate. Best combinations: RSI + moving averages (trend), RSI + volume (conviction), RSI + support/resistance (entry timing).
Q:What stop-loss strategy works best with RSI signals?
Use 2x ATR (Average True Range) below entry for RSI buy signals. Example: Enter at $50 with ATR = $2, stop at $46. This accounts for normal volatility. Tighter stops (1 ATR) get stopped out 60% of time before move develops. Wider stops (3 ATR) reduce win rate by giving losers too much room.
Q:How long can RSI stay overbought (>70) in a bull market?
Weeks to months. Shopify (SHOP) stayed above RSI 60 for 12 weeks in 2023 (+88% move). Palantir (PLTR) held RSI >50 for 8 weeks in late 2023 (+68%). This is why 70 overbought doesn't work in bull markets - you exit way too early. In bull regimes, only exit when RSI drops below 50 or price breaks 20-day MA.
Q:Can I use RSI alerts for crypto trading or is it only for stocks?
RSI works for crypto but requires different settings. Crypto has extreme trends, so use: RSI(7-10) instead of 14, thresholds 20-30/70-85 instead of 30/70, and expect RSI to stay extreme longer. Bitcoin (BTC) can stay RSI >80 for months in bull runs. Crypto RSI is best used for divergence detection, not threshold crosses.

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