Back
Smart Money Concept
Can RSI and other technical indicators be relied on for entering and exiting trades?
The article explains that relying on RSI and indicators alone for entries and exits can be misleading because indicators lag behind price, and declines can continue even in oversold conditions. It argues that indicators are best used as a supporting confirmation within an approach focused on price action, liquidity, and order blocks.
2026-05-04
Can RSI and other technical indicators be relied on for entering and exiting trades?
At first, I relied on RSI, and it gave a correct entry zone on the chart in front of you 🎯
Stop reading and answer first, then continue ...
Did you answer??
— Answer before you continue the thread
Then come take a look at the thread and see my view of RSI 🙂👇
First thing, I don’t understand how people who rely on these technical indicators think
I watch videos on YouTube
- 1️⃣- It explains a simple indicator like RSI or MACD
- 2️⃣- It enters a trade based on it
- 3️⃣- At the end of the video, it shows you the profits it achieved
Of course, any video with the steps above is an ad, and its goal is just to get you to sign up with the broker
RSI is the most important and most famous technical indicator; supposedly when it reaches oversold, the price should rise, so let’s apply that to the image above
Here it reached oversold more than once 😑
In numbers 1, 2, and 3, the price continued to drop with very strong momentum 🥲
Even at number 4, when the price went up.. it only went up to take liquidity and then bounced from the OB (as shown in the drawing) and continued dropping normally
At numbers 5 and 6, the price also continued dropping completely normally 🔻📉
Even though YouTube assured me I’m supposed to buy immediately as soon as it reaches oversold in a “master trading in 15 seconds” video 🤣
Let me tell you how I use technical indicators and how I benefit from them in my analysis 🫡🫡
This video is part of a series where I explain trading for beginners; I’ll leave its link at the end of the thread, and I was talking about technical indicators
Simply put, price leads the indicator’s movement
Indicators lag behind price and future prices cannot be predicted through them
But, but you can benefit from them as a supporting factor that confirms your entry into the trade
Watch the video below and understand more
Indicators lag behind price and future prices cannot be predicted through them
But, but you can benefit from them as a supporting factor that confirms your entry into the trade
Watch the video below and understand more
Bebo | Financial Markets Analyst
A financial markets analyst and trader with over 7 years of experience, offering a specialized educational approach through a comprehensive 3-level course designed to master SMC concepts. He has also developed his own methodology based on new practical concepts that improve entry points and build a more professional and profitable trading approach. Over 3 years, he has trained more than 600 students through free and paid educational content.
Follow us on Telegram for more market insights