Let's master discretionary trading by mastering RSI

There are quite a few indicator believers, but truthfully I don’t trust them very much myself.
Among viewers who watch videos predicting my stock and FX movements, there are occasional surprised people, but in the charts I use there are no moving averages, no Bollinger Bands, no Ichimaku Cloud, and only a slight RSI is displayed.
（Recently I just added Stochastics.）

＜Status of the Chart Analysis in the Video＞

To put it differently, even someone who doesn’t trust indicators that much such as me still believes RSI is a highly reliable indicator.

How to Use RSI

RSI, with its high reliability, is generally used as an indicator to determine whether something is overbought or oversold.
Technical indicators used as auxiliary tools for technical analysis include oscillator-type indicators that signal overbought/oversold and trend-following indicators that signal the direction of the trend. RSI belongs to the former category.
Oscillator-type indicators are considered strong in ranging markets, but in trending markets they tend to issue premature overbought or oversold signals.
Trend-following indicators are strong in trending markets, but in ranging markets they frequently produce deceptive buy and sell signals.

RSI Is万能 to Use

Generally, RSI is an excellent technical indicator that provides a quantitative measure of overbought and oversold levels, and indeed many people use it this way.
Its accuracy is superior to that of stochastics, which can emit overbought/oversold signals at dangerous timing in a trending market.

However, I also use RSI to understand trends.

This is because RSI has the following characteristics.

1) It reflects the trend status
2) It aligns with or leads the market

To briefly explain characteristic 1, RSI moves between 50 and 70 during an uptrend, and as it nears 70–80 the upward move slows and a pullback begins; when it nears 50, the pullback ends and a rebound starts.
During a downtrend, RSI moves between 30 and 50, and as it nears 30–20 the decline stops and a pullback begins; when it nears 50, the pullback ends and a further drop occurs.

In other words, RSI alone can handle both ranging and trending markets as an excellent technical indicator.

To be continuedhere