Been trading for a while now and I've come to realize most people overcomplicate RSI when it's actually pretty straightforward. Here's my RSI cheat sheet that actually works in real markets.

First, the basics. RSI sits between 0 and 100 and tells you about momentum. Above 70 usually means overbought, below 30 means oversold. But if you only trade based on that, you're gonna get rekt constantly. The real edge is knowing how to read RSI in context.

Let me share what I actually use. When I see RSI above 70, I don't automatically short. I look for bearish candlestick confirmation first. Same thing with oversold - just because RSI is below 30 doesn't mean you're buying the bottom. I combine it with support zones and suddenly the accuracy improves significantly.

One thing that changed my trading was understanding divergences. Bullish divergence happens when price makes a lower low but RSI makes a higher low. That's actually a decent setup. Bearish divergence is the opposite - price goes higher but RSI doesn't. I always confirm these on higher timeframes though, because lower timeframes give too many fakeouts.

Here's another part of my RSI cheat sheet that most traders miss: RSI trendline breakouts. Draw a trendline on the RSI itself, not on price. When that breaks, it can signal either trend continuation or reversal. I combine this with price action and volume spikes for confirmation. Volume really matters here.

The swing failure pattern is worth paying attention to. When RSI crosses 30 but then fails to break below it again, that's a bullish signal. When it crosses 70 but fails to go higher, that's bearish. These work best when you align them with actual support and resistance on the chart.

I don't use RSI in isolation. Moving averages help me see the trend direction, MACD confirms momentum, Fibonacci levels give me key price zones to watch. The combination is way more reliable than any single indicator.

One critical thing I learned the hard way: RSI behaves differently depending on what the market is doing. In a ranging market, I use RSI for reversals. In a trending market, I use it to catch pullbacks. Context is everything.

Honestly, this RSI cheat sheet works because it's practical. Set alerts so you don't have to stare at charts all day. Stay disciplined with your risk management. Don't ignore volume. And remember that RSI is a tool, not a magic crystal ball.

What's been your experience with RSI? Curious if you've found other setups that work better than the standard overbought/oversold levels.