# In-depth understanding of the RSI indicator

Is there any source that gives an in-depth explanation about why the RSI why we consider 30 and 70 the signal giving values of RSI and why we would consider using other values?

Giorgos Cut:
Is there any source that gives an in-depth explanation about why the RSI why we consider 30 and 70 the signal giving values of RSI and why we would consider using other values?

In fact there is no rules. You can use other levels. Some people use optimization tools to find the proper levels for the instrument and time frame they are trading.

Giorgos Cut:
Is there any source that gives an in-depth explanation about why the RSI why we consider 30 and 70 the signal giving values of RSI and why we would consider using other values?

google it, plenty of information out there...   below/above 30/70 represents potential outlier zones or extremes and therefore increased chance of a change.

Forget optimisation that is just curve fitting at its finest, instead think more about how big or small you want the reaction zone to be smaller =20/80 for instance less trades but probably better trades, bigger 40/60 more trades but probably more failed trades design your system around your descision

Yashar Seyyedin #:

In fact there is no rules. You can use other levels. Some people use optimization tools to find the proper levels for the instrument and time frame they are trading.

All I have found online is that traditionally 30/70 levels represent trading oportunities. Thanks for the answer though.

Giorgos Cut #:

All I have found online is that traditionally 30/70 levels represent trading oportunities. Thanks for the answer though.

did you see this:  https://www.investopedia.com/terms/r/rsi.asp

Relative Strength Index (RSI) Indicator Explained With Formula
• www.investopedia.com
The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. The indicator was...
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