How to Set Up RSI｜Where to Find It and What the Levels Mean

The standard RSI setting｜14 periods

The most common RSI setting is a period of 14. This means RSI compares upward and downward momentum over the most recent 14 candles. Most tools use 14 as the default. The basic approach is to start with 14 and adjust it only if needed.

What happens when you change the period

With a shorter period (e.g., 9), RSI reacts more sharply to price moves and reaches 30 or 70 more often. You get more signals, but also more false signals. With a longer period (e.g., 21), RSI reacts more slowly but moves more steadily. There is no single right answer; each setting suits some timeframes and instruments better than others. How results actually differ by period is covered with backtest data in "Which RSI Period Works Best".

Where to set RSI in each tool

RSI comes built into almost every charting tool. Typically, you choose RSI from "Add indicator" and enter the period (Length).

• General charting tools: add "RSI" from the indicator list and set the period to 14.
• ENTRIQ: display RSI on the Chart Replay screen and test it while advancing historical charts.
• Differences in each tool's bar replay features and settings are covered in How to Choose a Chart Replay Platform｜Compare by Practice Volume, Not Features and TradingView Bar Replay｜5 Limits for Serious Backtesting.

More important than each tool's detailed steps is to fix your settings once you decide on them, and test with those settings. If you change them every time, you can't compare results.

What levels such as 30 and 70 mean, and how to adjust them

By default, lines are drawn at "30 = oversold / 70 = overbought." These are rules of thumb, not absolute thresholds. Some traders widen the gap between the thresholds by using 20 and 80 for volatile stocks or use 40/60 in calmer markets. However, the more you adjust them, the easier it is to end up fitting the settings to what you want to see, so it is especially important to backtest any adjusted settings.

Check which settings suit you through testing

For both the period and the levels, there are general rules of thumb, but what works best for your own instruments and timeframe can only be found out through testing. Once you have decided on your settings, follow How to Backtest RSI and check them in ENTRIQ's Chart Replay.

Frequently asked questions (FAQ)

Q. Is it fine to keep the RSI period at 14? A. Starting with 14 is fine. Use a shorter period if you want faster reactions and a longer one for more stability, but the starting point is to check any changed setting through backtesting. Q. Is 30 the right oversold line? A. 30 is the common rule of thumb. Some traders adjust it to 20 or 40 depending on how volatile the instrument is, but adjusted thresholds in particular should be checked through testing. Q. Is RSI the same in every tool? A. The calculation is basically the same, but small differences can occur depending on the smoothing method. It is safest to keep your settings fixed within the same tool.

What this article covered

• The standard RSI period is 14. A shorter period reacts faster but gives more false signals; a longer period is more stable.
• The 30 and 70 lines are not absolute; adjusted settings in particular should be checked through backtesting.
• Once you decide on your settings, fix them and test with them (if you change them every time, you can't compare).

Related articles

• Complete Guide to RSI｜Reading, Settings, Entries and Testing

This article is for informational purposes only and does not recommend any specific setting or trade. All investment decisions are your own responsibility.

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