Why Use the RSI Overbought/Oversold Algo Trading Strategy?
✔ Highly Accurate: Achieves a success rate of 65%-75% when applied to mean-reverting stocks.
✔ Effortless Analysis: Easily spot overbought (above 70) and oversold (below 30) conditions with visual cues.
✔ Versatile Timeframe: Ideal for medium to long-term horizons in range-bound markets.
✔ Beginner-Friendly: Simple rules make it accessible to traders of all experience levels.
How It Works
- Overbought Signal: When RSI crosses above 70, it indicates an overbought condition—suggesting a potential SELL opportunity.
- Oversold Signal: When RSI drops below 30, it signals an oversold condition—indicating a potential BUY opportunity.
- Visual Alerts: The strategy provides clear BUY/SELL markers on your chart to simplify decision-making.
Key Insights
- Best for Range-Bound Stocks: This strategy excels in sideways markets where prices revert to the mean.
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