Read the momentum scale
The Relative Strength Index compares recent upward and downward price movements and expresses the result on a scale from zero to 100. The chosen lookback affects responsiveness. Levels around 70 and 30 are conventional reference points, but they are not universal valuation boundaries. Record the timeframe and settings whenever comparing charts, since different inputs can produce materially different readings for the same instrument.
Interpret the market context
An elevated RSI can persist during a strong upward trend, while a low reading can remain during sustained declines. Calling a market overbought does not establish when it will fall. Compare momentum behavior with price structure, liquidity and relevant events. A divergence between price and RSI is an observation worth investigating, but it is not a self-contained entry rule or a promise of reversal.
Turn an idea into a test
Define the exact trigger, confirmation, holding period and invalidation condition before reviewing outcomes. Compare alternatives on data not used to select the settings, and include costs and failed signals. Using several indicators derived from the same price series may add less independent evidence than expected. FYLU presents RSI as an analytical tool, not a live signal, personalized recommendation or validated profit-generating system.