Relative Strength Index (RSI)
The RSI is a momentum oscillator that measures the speed and magnitude of recent price changes to evaluate whether an asset is overbought or oversold. It oscillates between 0 and 100.
How it works: RSI compares the average gain to the average loss over a specified number of periods. High RSI values (typically above 70) suggest an asset may be overbought, while low values (below 30) suggest it may be oversold.
Settings in block algo flex
| Setting | Description | Default |
|---|---|---|
| Use RSI? | Enable/disable RSI in the signal | Off |
| RSI Source | Price component to calculate from (close, open, high, low) | close |
| RSI Length | Number of periods for calculation. Lower = more responsive, higher = smoother | 2 |
| Timeframe | Timeframe for RSI data. "Chart" uses current chart timeframe | Chart |
| Buy Condition | RSI level that triggers a buy signal (e.g., "Less Than 30") | Less Than 3 |
| Sell Condition | RSI level that triggers a sell signal (e.g., "Greater Than 70") | Greater Than 90 |
Common Configurations
- Classic: Length = 14, Buy < 30, Sell > 70 (standard overbought/oversold)
- Aggressive: Length = 2, Buy < 10, Sell > 90 (very short-term mean reversion)
- Trend filter: Length = 14, Buy < 50, Sell > 50 (trade only with momentum direction)
Pro Tip: Very short RSI lengths (2-3) with extreme thresholds (below 5 or above 95) can capture sharp mean-reversion opportunities that most traders miss. Experiment with unconventional settings to find alpha.