RSI on M1: overbought doesn't mean reversal
Posted: Tue Nov 03, 2026 12:43 pm
RSI above 70 is often read as "overbought, sell". On M1 during a strong London move, RSI can stay above 70 for a long time while price keeps rising.
How RSI is better used for scalping:
To check your own use: tag trades taken on RSI extremes and compare with others. Counter-trend RSI trades on M1 often have a low hit rate during London.
Short trades against momentum on M1 tend to need very tight stops, which makes costs a large share of the risk.
How do you use RSI, if at all?
How RSI is better used for scalping:
- As a momentum gauge: RSI staying high confirms a strong move, not a reversal.
- Divergence at a key level: price makes a new high, RSI doesn't, at yesterday's high or a round number. Still not a signal on its own.
- As a filter: avoid shorts when RSI on M5 is above 60.
To check your own use: tag trades taken on RSI extremes and compare with others. Counter-trend RSI trades on M1 often have a low hit rate during London.
Short trades against momentum on M1 tend to need very tight stops, which makes costs a large share of the risk.
How do you use RSI, if at all?