So you want to know the best RSI settings for actually making money in trading? I've been digging into this and there's definitely more to it than just looking at overbought and oversold levels.

Let me break down what actually works. The classic approach everyone knows is watching for RSI below 30 (oversold) as a potential buy signal and above 70 (overbought) for sells. That's the foundation, but honestly it's not enough on its own. The 50 midline matters too - when RSI stays above 50 you're in uptrend territory, below 50 means downtrend. Simple but useful.

Here's where best RSI settings get interesting though. I've noticed a lot of traders sleeping on the two-period divergence method. You run RSI 5 alongside the standard RSI 14, then watch for crossovers. The shorter timeframe RSI reacts faster to price action, so you catch reversals earlier before the 14-period catches up. When RSI 5 crosses above RSI 14 while being oversold below 30, that's your buy signal. Opposite for sells when RSI 5 crosses below while overbought above 80. This combo gives you way more trading opportunities than waiting for the classic levels.

Another technique worth exploring is drawing trendlines directly on the RSI chart itself. Connect the peaks and valleys on the RSI, not the price chart. When that RSI trendline breaks, it usually happens before the price chart breaks - that's your edge. You get early warning and can position ahead of the move.

Now the best RSI settings also include watching for divergences. Bearish divergence happens when price makes a higher high but RSI makes a lower high - classic top reversal signal. Bullish divergence is the opposite, price lower low but RSI higher low - that's often where downtrends turn around. These divergences show up especially well on higher timeframes like 4-hour or daily charts.

I've found that combining these best RSI settings with other tools like pivot points really amplifies your edge. You're not just relying on one indicator, you're layering confirmation signals. The key is testing different settings on your own charts and seeing what resonates with your trading style. What works for me might need tweaking for your market or timeframe.

Obviously past performance doesn't guarantee future results - that's just how markets work. But understanding these RSI configurations and knowing when to apply each one definitely improves your odds. If you're serious about technical analysis, spending time on these best RSI settings is worth it.