This video shows you how to use Relative Strenght Index – RSI indicator. This video also shows you how to find out the false break out signals and genuine overbought signals. It also explains you how to look at the step parameters like 8, 14 etc and the percentage bands, if your are using 20 – 80 and 30 – 70 and the critical differences between them and using those to help you identify trade set ups.

The default step parameter for RSI is 14 and if you change it to a lower number you will get more overbought or oversold signals but this  involves higher risk. If you have a larger step parameter you will get less number of signals but with less risk. The author of this video recommends a higher step parameter for the RSI indicator and percentage bands of 20 and 80 because even if it results in lesser number of signals they are very strong and good signals. Check the RSI video.