RSI Buy/Sell Signals - User Guide

Overview

RSI (Relative Strength Index) signals help identify potential trading opportunities based on extreme overbought and oversold market conditions. This guide explains how to configure and use RSI_BUY and RSI_SELL signals effectively.

Configuration Settings

1. Enable RSI Signals

# RSI-based triggers
enable_overbought_signal: false  # Set to true for RSI_SELL signals
enable_oversold_signal: false    # Set to true for RSI_BUY signals

Important: Set these to true to activate RSI signal detection.

2. RSI Threshold Levels

rsi_ultra_extreme_oversold: 4.0      # Ultra extreme buy signal
rsi_extreme_oversold: 15.0           # Extreme buy signal
rsi_extreme_overbought: 85.0         # Extreme sell signal
rsi_ultra_extreme_overbought: 96.0   # Ultra extreme sell signal

How it works:

RSI_BUY Signal: Triggered when RSI falls below oversold thresholds (4.0 or 15.0)
RSI_SELL Signal: Triggered when RSI rises above overbought thresholds (85.0 or 96.0)

Signal Actions Configuration

Option 1: Automatic Trading (Bot Places Orders)

Add RSI signals to supported_volatility_action for automatic order placement:

supported_volatility_action:
  - "BUY"
  - "SELL"
  - "PUMP"
  - "CRASH"
  - "RSI_BUY"    # Bot will automatically place long orders
  - "RSI_SELL"   # Bot will automatically place short orders

⚠️ Note: After changing this setting, remove all symbols from symbols.json and resync.

Option 2: Broadcast Only (No Automatic Trading)

Add RSI signals to supported_volatility_action_broadcast for notifications only:

supported_volatility_action_broadcast:
  - "BUY"
  - "SELL"
  - "PUMP"
  - "CRASH"
  - "RSI_BUY"    # Only broadcast buy signal (no order placement)
  - "RSI_SELL"   # Only broadcast sell signal (no order placement)

This sends alerts to WhatsApp, Discord, or Telegram without placing trades.

Recommended Settings by Trading Style

Scalp Trading (Quick Profits)

Objective: Capture small price movements in very short timeframes

Parameter	Recommended Value
Timeframe	1m, 3m
RSI Period	14 candles
Oversold Level	15.0 (less extreme for more signals)
Overbought Level	85.0 (less extreme for more signals)
Candles to Fetch	50-100 candles

Configuration:

enable_oversold_signal: true
enable_overbought_signal: true
rsi_extreme_oversold: 15.0
rsi_extreme_overbought: 85.0
interval: 1m  # or 3m

Day Trading (Intraday Positions)

Objective: Hold positions for hours within a single trading day

Parameter	Recommended Value
Timeframe	5m, 15m, 30m
RSI Period	14 candles
Oversold Level	10.0 - 15.0
Overbought Level	85.0 - 90.0
Candles to Fetch	100-150 candles

Configuration:

enable_oversold_signal: true
enable_overbought_signal: true
rsi_extreme_oversold: 10.0
rsi_extreme_overbought: 90.0
interval: 15m  # or 5m, 30m

Swing Trading (Multi-Day Positions)

Objective: Capture price swings over several days to weeks

Parameter	Recommended Value
Timeframe	1h, 2h, 6h
RSI Period	14 candles
Oversold Level	4.0 - 10.0 (more extreme)
Overbought Level	90.0 - 96.0 (more extreme)
Candles to Fetch	200-500 candles

Configuration:

enable_oversold_signal: true
enable_overbought_signal: true
rsi_ultra_extreme_oversold: 4.0
rsi_ultra_extreme_overbought: 96.0
rsi_extreme_oversold: 10.0
rsi_extreme_overbought: 90.0
interval: 1h  # or 2h, 6h

Long-Term/Position Trading

Objective: Hold positions for weeks to months

Parameter	Recommended Value
Timeframe	12h, 1d
RSI Period	14 candles
Oversold Level	4.0 (ultra extreme only)
Overbought Level	96.0 (ultra extreme only)
Candles to Fetch	500-1000 candles

Configuration:

enable_oversold_signal: true
enable_overbought_signal: true
rsi_ultra_extreme_oversold: 4.0
rsi_ultra_extreme_overbought: 96.0
interval: 1d  # or 12h

RSI Calculation Best Practices

Number of Candles to Fetch

The standard RSI calculation uses 14 periods, but you need additional historical data for accurate calculations. However, fetching too many candles can cause API limits and slow processing.

Trading Style	Timeframe	Minimum Candles	Optimal Candles	Time Coverage
Scalp	1m, 3m	30	50-100	50-300 minutes
Day	5m, 15m, 30m	50	100-200	8-100 hours
Swing	1h, 2h, 6h	100	150-250	6-60 days
Long-Term	12h, 1d	100	150-200	150-200 days (~6 months)

Why these recommendations?

✅ API Compatibility:

Most exchanges support 200-500 candles per request (1000+ may hit limits)
Binance: Up to 1000 candles per request
Other exchanges: Typically 200-500 candles
Fewer API calls = faster processing

✅ Processing Efficiency:

RSI only needs 14 periods + warm-up (total ~30 candles minimum)
100-200 candles provides excellent accuracy without performance impact
More candles = longer processing time per symbol

✅ Practical Time Coverage:

1d timeframe + 200 candles = 6.5 months (sufficient for trend analysis)
1d timeframe + 1000 candles = 3+ years (unnecessary, slow, may exceed API limits)
Recent data is more relevant for current market conditions

RSI Accuracy vs. Candle Count:

30 candles: Minimum viable (RSI calculated but less reliable)
50-100 candles: Good accuracy, fast processing
100-200 candles: Excellent accuracy, optimal balance
500+ candles: Marginal improvement, much slower processing

Quick Start Guide

Choose Your Trading Style
Decide if you're scalping, day trading, swing trading, or position trading.
Configure RSI Settings
Based on your chosen style, set:
- enable_oversold_signal and/or enable_overbought_signal to true
- Appropriate RSI threshold levels
- Correct timeframe interval
Choose Action Type
Decide whether you want:
- Automatic trading: Add signals to supported_volatility_action
- Notifications only: Add signals to supported_volatility_action_broadcast
Set Candle History
Ensure you fetch enough historical candles for accurate RSI calculation.
Test and Monitor
- Start with broadcast-only mode to test signals
- Monitor signal quality before enabling automatic trading
- Adjust thresholds based on market conditions

Example Configurations

Conservative Day Trader (15m timeframe)

enable_overbought_signal: true
enable_oversold_signal: true
rsi_extreme_oversold: 10.0
rsi_extreme_overbought: 90.0
interval: 15m
candles_to_fetch: 200

supported_volatility_action_broadcast:
  - "RSI_BUY"
  - "RSI_SELL"

Aggressive Scalper (3m timeframe)

enable_overbought_signal: true
enable_oversold_signal: true
rsi_extreme_oversold: 15.0
rsi_extreme_overbought: 85.0
interval: 3m
candles_to_fetch: 100

supported_volatility_action:
  - "RSI_BUY"
  - "RSI_SELL"

Patient Swing Trader (2h timeframe)

enable_overbought_signal: true
enable_oversold_signal: true
rsi_ultra_extreme_oversold: 4.0
rsi_ultra_extreme_overbought: 96.0
interval: 2h
candles_to_fetch: 500

supported_volatility_action:
  - "RSI_BUY"
  - "RSI_SELL"

Important Notes

⚠️ Risk Management

RSI signals work best in ranging markets
Can give false signals in strong trends
Always use with stop-loss orders
Don't rely solely on RSI for trading decisions

⚠️ Configuration Changes

After modifying supported_volatility_action, delete symbols.json and resync
Test new configurations in broadcast mode first
Monitor signal frequency and quality

⚠️ Optimization Tips

Lower thresholds = More frequent signals (but more false signals)
Higher thresholds = Fewer, stronger signals (but may miss opportunities)
Adjust based on asset volatility and market conditions
Backtest settings before live trading

RSI Buy/Sell Signals - User Guide

Overview

Configuration Settings

1. Enable RSI Signals

2. RSI Threshold Levels

Signal Actions Configuration

Option 1: Automatic Trading (Bot Places Orders)

Option 2: Broadcast Only (No Automatic Trading)

Recommended Settings by Trading Style

Scalp Trading (Quick Profits)

Day Trading (Intraday Positions)

Swing Trading (Multi-Day Positions)

Long-Term/Position Trading

RSI Calculation Best Practices

Number of Candles to Fetch

Why these recommendations?

RSI Accuracy vs. Candle Count:

Quick Start Guide

Example Configurations

Conservative Day Trader (15m timeframe)

Aggressive Scalper (3m timeframe)

Patient Swing Trader (2h timeframe)

Important Notes

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