The RSI: the technique sold by marketer traders VS what profitable traders do

No, the RSI on its own is not a reliable indicator for buying oversold and selling overbought. Across a run of 5 consecutive overbought signals on the same asset, all 5 ended in a loss while the price went from €3.70 to €7.82, i.e. +111%. The RSI is a reading tool, not a strategy.

If you’re looking for trading strategies, you will inevitably come across the RSI. This indicator is very widely used — you see it constantly in screenshots and on TV. And the marketing pros on YouTube often present it as the miracle indicator.

What is the RSI in trading?

The RSI (Relative Strength Index) is a technical indicator measuring the speed and magnitude of price changes over a given period, generally 14 units of time. It oscillates between 0 and 100: above 70 the asset is said to be overbought; below 30, oversold.

Those two thresholds are the source of the misunderstanding: overbought does not mean “the price is going to fall”, it means “the price has risen fast”. An asset can stay overbought for weeks while continuing to climb — which is exactly what the rest of this article shows.

The RSI as presented by the marketer trader

Here’s what you get shown:

RSI — marketer example: buying on oversold — Example 1 — buying on the exit from the oversold zone (RSI < 30)

You have to admit it looks simple! Just buy when the RSI enters the oversold zone (below 30), or when it exits it, and enjoy that whole beautiful rise.

For selling, just sell when the RSI enters the overbought zone (above 70) or when it exits it.

RSI — marketer example: selling on overbought — Example 2 — exit from the overbought zone, price falling. Magic.

Second example, same thing: we exit the overbought zone, the price falls. So effective!

On the internet, examples of this kind — which are real cases, carefully chosen — show you how simple it is to make money in the markets. Just follow the RSI line!

On social media, you’re then invited to join:

A free Telegram channel or a free course
Then VIP access at €99/month
Or 1 free month, in exchange for signing up and depositing with a partner broker

The RSI Marketer Trader: it's easy. You buy here, you sell there. I make thousands of euros every day with this technique. Join my Telegram, it's free — RSI Marketer trader. Follow the line, make loads of money, it’s easy!

The talk is mostly about forex and day trading. Forex: big leverage, open 24 hours a day 5 days a week, tight spreads… and very attractive commissions paid to affiliates for every new signup.

You get shown beautiful cars, paradise homes, luxury everywhere. Amazing what you can earn by following a little line on a screen.

You get the idea. The RSI is sold to you as a miracle method, on the back of a few perfect examples. It’s marketing — like the ultra-silent vacuum cleaner, the unbreakable suitcase or the detergent that washes whiter than white. When you try it for real, you soon see it isn’t as fantastic as in the advert.

The RSI according to a profitable trader

To show you a concrete example, let’s look at a series of consecutive trades on a single asset, rather than a few carefully chosen examples.

1st attempt

The price reaches a resistance level. The upper wick is enormous between €3.70 and €3.85, proof of the rejection. A double top is forming, and the RSI is clearly overbought, above 70.

Logically: either you were in the position and it’s time to sell, or you weren’t and you could short to profit from the announced reversal.

Let’s see how that turns out a little later…

RSI — result of the 1st attempt: LOST — The price exploded to €4.20 (+15%) — LOST

LOST! After hesitating for 2-3 candles, the price exploded to over €4.20, roughly +15%. The RSI did drop back below 70, but the price was already far higher.

2nd attempt

LOST AGAIN! Yes, the RSI did fall. But the price stayed between €3.80 and €4.60. If you had been short at €4, you would have made no money.

3rd attempt

We reach a resistance zone at €4.40-€4.60, with a tiny indecisive candle. The RSI is overbought. Do you sell? Wait? Buy?

LOST YET AGAIN! The price continues to €6. And we were at €3.70 at the first overbought signal — that’s +62% since the start!

4th attempt

The RSI has fallen, yes — but still no drop in price. We’re now at €7, with an RSI that has entered overbought territory again and is exiting it.

LOST ONCE MORE! Remember: trees don’t grow to the sky. That’s already 4 losses in a row, so this time it must be the one!

RSI — 5th attempt: price at €7.82 (+111%) — The RSI goes round again, and so does the price — at €7.82 that’s +111% since the start

LOST AGAIN! The RSI goes round again, and so does the price. At €7.82, that’s +111% compared with the start.

Recap: 5 overbought signals, 5 losses

RSI signal	Price at the signal	What the RSI implied	What the price did
1st attempt	€3.70	Bearish reversal	Rise to €4.20 (+15%)
2nd attempt	~€4.00	Confirmed decline	Range €3.80 – €4.60, no gain
3rd attempt	€4.40 – €4.60	Unbreakable resistance	Rise to €6 (+62% from €3.70)
4th attempt	~€7.00	Rally exhausted	Rise continued
5th attempt	€7.82	Another reversal	+111% since the first signal

Result: 5 sell signals out of 5 were losers, on an asset that more than doubled during the sequence.

What I did with it myself

I actually took this trade. I bought at precisely €4.40 and held until the real sell signal, which came just under €10.

Sold half at €9.30
Sold the rest at €8.15

Result: +96% in exactly 5 days.

But back to the RSI. No, it is not a miracle method. Yes, you should keep things simple. But when it’s too simple, it doesn’t work.

RSI Profitable trader. Trading isn't easy, but it can be learned. It takes work. Either you're ready to pay that price, or there are other very profitable ways to make money — The RSI according to a profitable trader. No, it isn’t that simple — but it can be learned

What is the difference between a marketer trader and a profitable trader?

The marketer trader makes a living off you: basic courses and affiliate commissions paid by their partner broker (€200 to €800 per client brought in). The profitable trader makes a living from the markets and doesn’t need your deposit. Their objectives are therefore opposed: one wants you to trade, the other wants you to win.

Criterion	Marketer trader	Profitable trader
Source of income	Courses + broker affiliation (€200-800/client)	Trading, long-term investing, coaching
Objective	Get you to open an account and deposit	Get you to make money
Markets pushed	Forex, day trading, high leverage	Swing trading, investing
Evidence shown	A few perfect, cherry-picked examples	Runs of consecutive trades, losses included
Message	Bling, easy gains	Mindset, work, risk management
Typical offer	Free then VIP at €99/month	Coaching, indicators, proven strategies

How the marketer trader makes a living

By selling basic courses with basic strategies that ultimately don’t work
By getting you to open an account with their partner broker — who may pay them between €200 and €800 per client brought in

Their objective: get you trading. Because they make money if you open an account and fund it. And even more if you lose your money trading badly.

How the profitable trader makes a living

By trading
By investing intelligently over the longer term
By offering coaching to help others do the same

Their objective: get you winning. They don’t care about earning €500 in affiliate commission — they earn that every day doing what they love.

What each of them offers you

The marketer trader offers:

Free content, then VIP access at €99/month
Simple, well-marketed strategies, usually focused on forex and day trading
Bling to make you dream

The profitable trader offers:

Coaching to analyse your trades and genuinely help you improve
Indicators to identify potential areas of interest
Proven investment strategies, if active trading doesn’t appeal, for passive income with a real return
A message centred on mindset and swing trading — because that’s what makes money and limits commissions

Frequently asked questions

Is the RSI a reliable indicator?

The RSI is reliable for what it measures — the speed of price changes — but not as a standalone buy or sell signal. In the example in this article, 5 consecutive overbought signals were all losers while the price advanced by 111%.

What do overbought and oversold mean on the RSI?

An RSI above 70 indicates an overbought zone, an RSI below 30 an oversold zone. Beware the misreading: these thresholds measure the speed of the move, not its exhaustion. An asset can stay overbought for weeks while continuing to rise.

Why doesn't the RSI work the way it's shown on YouTube?

Because the examples presented are selected after the fact from the cases where the indicator happened to be right. Across a run of consecutive, unfiltered signals, the success rate collapses. That’s a selection bias, not a strategy.

How does a marketer trader make money?

Mainly through affiliation: their partner broker pays them between €200 and €800 per client brought in. So they earn when you open an account and deposit funds, regardless of your results — and more still if you trade heavily.

How do you spot a fake trading course?

Four warning signs: examples that always win and never a run of losses, a heavy emphasis on high-leverage forex, a signup link to a partner broker, and a focus on lifestyle rather than method.

Should you abandon the RSI completely?

No. The RSI remains useful for identifying potential areas of interest and reading the context of a move. The mistake is turning it into a standalone entry and exit rule, with no risk management and no price analysis.

The analyses and content published on EliteProfit are provided for educational purposes. All investments carry a risk of capital loss.