Every system on this site so far reads either price on its own or price against volume. This one reads price against momentum: a 7-period RSI plotted underneath the candles, scaled 0 to 100, telling you when a move has stretched further than it can hold. Charts below are interactive. Click Play on any setup and watch the signal bar fire, the RSI line underneath it light up at its own reading, then the entry, stop, and target draw themselves, computed live from the actual candle.
“A bare RSI threshold cross is not a trigger. Check how long RSI has actually sat past 30 or 70, then wait for the signal bar to close where the rule says before you act.”Jason Parker · Founder
A handful of terms show up again and again below. Click one to see what it means.
Wait for the signal bar to close, then buy if price on the next bar trades one tick above the signal bar's high. The close confirms the signal. It isn't your entry price.
Wait for the signal bar to close, then sell if price on the next bar trades one tick below the signal bar's low. The close confirms the signal. It isn't your entry price.
Same math as every other system on this site. The stop sits one tick past the far side of the signal bar. The target sits half that bar's range away from entry. The threshold reversal setup below runs a $0.60 signal bar, for an entry near $151.71, a stop near $151.09, and a target near $152.01. What's new here is the filter sitting on top of that math: where RSI has been for the last several bars, not just where it is right now. A signal bar that fires the moment RSI first tags 30 is a different trade than one that fires after RSI has already sat under 30 for six bars straight, even though the entry, stop, and target come out the same either way.
Play with the numbers below. The default reflects the threshold reversal setup's own risk to reward.
≈70% is the honest break-even line once spread and slippage are priced in, not the raw number the math alone gives you. ≈80% is doing well. ≈90% is among the best scalpers running a system like this.
There's no single shape to look for, same as every system before this one. A threshold reversal bar closes back through 30 or 70 near its own high or low, right after RSI first tagged the line. A failure swing bar breaks the high or low set on RSI's own bounce, after a second dip that held short of the extreme instead of re-testing it. A divergence bar closes back against a fresh price extreme that RSI never confirmed, wicking through the new high or low and giving it back. A centerline bar resumes the prior trend after RSI pulled back to 50 and held, instead of breaking through it. Four different jobs. Same math once the bar closes: entry one tick past its own high or low, stop one tick past the far side, target half the range.
One honest note before the setups. RSI is a derivative of price, not a lead on it: by the time a bar closes back through 30 or 70, part of the move it's confirming has already happened. On a fast 5-minute chart a 7-period reading can cross 30 or 70 more than once in a session, so a bare threshold cross by itself isn't a trigger. It's a filter that still needs the actual signal bar to close where the rule says. The checker below is the other half of that filter: how long RSI already sat past the line before this bar, which is what separates a normal stretch from a trend too strong to fade.
Same threshold, three different histories behind it. Click through and watch the verdict flip.
Illustrative examples built to test RSI persistence, not the setup itself. Not historical AMD prices or RSI values. The 30/70/4-bar marks are a rule of thumb, not a law anyone enforces.
Each chart shows the setup forming, with the RSI reading plotted under every candle. Hit Play and the signal bar fires, its RSI point turns amber against the 30/70 zone lines, then the entry, stop, and target draw in, computed the same way you'd compute them live, straight from the signal bar's own high, low, and close.
The pattern: RSI tags an extreme for the first time in a while, then the very next bar closes back on the other side of that line near its own high or low.
Long: RSI dips to 30 or below, then a green bar closes back above 30 near its own high. Buy the close.
Short: mirror this to the downside: RSI tags 70 or above, then a red bar closes back under 70 near its own low. Sell the close.
The pattern: RSI dips past 30, bounces, pulls back a second time but holds above 30 instead of re-breaking it, then breaks the high RSI set on the bounce. The failed second dip is the signal, confirmed once price also breaks the level it set on that same bounce.
Long: after a higher RSI low holds above 30, a bar closes above the intervening price high near its own high. Buy the close.
Short: mirror this to the downside: a lower RSI high holds below 70, then a bar closes below the intervening price low near its own low. Sell the close.
The pattern: price prints a fresh extreme that RSI does not confirm, a lower RSI high against a higher price high, or a higher RSI low against a lower price low, then a bar wicks through the new extreme and closes back against it.
Short: price makes a higher high, RSI prints a lower high than its own prior peak, and a bar wicks above the new high before closing back down near its own low. Sell the close.
Long: mirror this to the downside: a lower price low against a higher RSI low, wicking below before closing back up near its own high. Buy the close.
The pattern: the one setup here that trades with the trend instead of against it. RSI pulls back toward 50 during a trend, holds it instead of breaking through, then a bar resumes the original direction and closes near its own high or low.
Long: in an uptrend, RSI pulls back to 50 or just above and holds, then a green bar resumes and closes near its high. Buy the close.
Short: mirror this to the downside: in a downtrend, RSI pulls back to 50 or just below and holds, then a red bar resumes and closes near its low. Sell the close.
RSI tells you a move might be stretched. It doesn't tell you the reversal holds. A threshold cross can fire and stop out ten seconds later anyway, same as any other signal bar on this site. Loosening the entry rule because RSI looks extreme is how this system's edge disappears fastest. Run your own numbers in the position-size calculator, or head back to risk management for the account-level rules that sit underneath every system on this site.
Common questions about trading this specific system, answered straight.
It's a 5-minute AMD system built around a 7-period RSI plotted under the candles: four setups (threshold reversal, failure swing, divergence fade, centerline continuation) that all share the same entry, stop, and target math once a signal bar closes: entry one tick past that bar's own high or low, a stop one tick past the far side, and a target half the bar's range away.
By checking how long RSI has actually sat past 30 or 70 before this bar, not just whether it crossed the line once. A 7-period RSI on a fast 5-minute chart can tag 30 or 70 more than once in a session, so a bare threshold cross isn't a trigger on its own. It's a filter that still needs the signal bar to close where the rule says, which is what the RSI persistence checker on this page is built to show.
No. Three of the four setups here, threshold reversal, failure swing, and divergence fade, trade a stretch snapping back. The fourth, centerline continuation, trades with the trend: RSI pulls back to 50 and holds instead of breaking through, then the trend resumes. Four different jobs, but the same stop and target math once the signal bar closes.
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