What it measures
RSI compares the size of recent gains with recent losses and scales the result from 0 to 100. Readings above 70 are called overbought and below 30 oversold. It measures the speed of price, not its direction, so a strong trend can keep RSI above 70 for a long time.
Starting settings by expiry
| Expiry | Settings | Signal |
|---|---|---|
| 1 min | RSI 7 on 15-sec or 1-min candles | Levels 80 / 20 |
| 5 min | RSI 14 on 1-min candles | Levels 70 / 30 |
| 15 min | RSI 14 on 5-min candles | Levels 70 / 30, 50-line filter |
Starting points for testing on a demo account, not proven profitable settings.
How traders use it
- Fade extremes in a range: a put when RSI crosses back below 70 at resistance, a call when it crosses back above 30 at support.
- Use the 50 line as a trend filter: only take calls while RSI stays above 50, puts while it stays below.
- Watch for divergence: price makes a new high while RSI makes a lower high, a sign that momentum is fading.
Where it fails
- In a strong trend “overbought” can stay overbought: selling every 70 reading loses against the trend.
- Shorter periods give more signals and more noise.
- RSI alone says nothing about where support or resistance is.
Works well with
- Bollinger Bands — Volatility bands around a moving average.
- Exponential moving average (EMA) — Trend direction with more weight on recent prices.
FAQ
What is the best RSI setting for 1-minute binary options?
Many traders start with RSI 7 and levels 80/20 to cut noise on very short expiries, then test it on a demo account before changing anything.
Is RSI enough on its own?
No. RSI works best combined with price levels or a trend filter such as a moving average.
How this page was made: drafted with AI assistance from public sources and our own test logs, then checked and edited by the ExpiryLab editorial team. The date above shows the last check. How we test · Editorial policy