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using RSI

🔹 1. What RSI Really Measures​

RSI isn’t about absolute momentum like MACD — it’s about the balance of up vs. down closes over a look-back period (usually 14 candles).

That means:

  • On lower timeframes, RSI is highly sensitive to short-term volatility and micro-structure.
  • On higher timeframes, RSI smooths out noise and reveals whether the entire trend leg is gaining or losing strength.

So the difference across timeframes is really: 👉 “Noise filter vs. structure detector.”

🔹 2. The Hierarchy of RSI Meaning​

TimeframeWhat RSI tells youHow to use it
1-5 minMicro sentiment — order flow bursts, VWAP interactions, small liquidity sweeps.Use for entries/exits, overbought/oversold micro-signals. 40–60 range often dominates here.
15-30 minIntraday structure — short-term trend shifts.Ideal for confirming MACD cross direction. RSI moving 40→60 or 60→40 signals intraday control shift.
1-4 hrTrend phase — are we in accumulation, markup, distribution, markdown.Look for RSI staying above 55 (bull trend) or below 45 (bear trend). The “50 line” becomes trend bias, not entry signal.
Daily+Market regime — broad trend bias.Use only for background context (e.g., “daily RSI 70” doesn’t mean short; it means trend exhaustion is possible).

🔹 3. How to Stack RSI Like You Do With MACD​

Example (you shorting SOL-PERP):

  • 5-minute RSI: Entry signal zone → if it rolls from 55→45 = short momentum beginning.
  • 15-minute RSI: Confirms the intraday direction → if still rising, expect 5-min retraces to fade; if it turns down, alignment achieved.
  • 1-hour RSI: Defines the “gravity” → if it’s below 50, you’re fighting with the dominant downtrend.

So when you get:

5-min RSI rolls down, 15-min flattens, 1-hr is below 50, that’s perfect alignment for short continuation.

If 1-hr is rising, though, that’s usually just a retrace or VWAP fade — not the real leg.

🔹 4. The Practical Framework​

You can think of RSI like this:

1. Direction of RSI (up/down) → momentum slope
2. Position of RSI (above/below 50) → trend bias
3. Duration RSI stays extended (70+/30–) → exhaustion or strength

So:

  • On low TFs, trade the slope.
  • On mid TFs, trade the crosses (40/60 → 50 midline).
  • On high TFs, trade the regime (is it living above or below 50?).

🔹 5. Combining RSI with MACD​

Think of MACD as velocity and RSI as pressure.

  • When MACD rising but RSI failing to break 50, it’s a weak push — fading likely.
  • When RSI crosses 50 first, and MACD follows → that’s early trend detection.