What is RSI oversold? — chart signal explained
RSI compares how strongly price has risen versus fallen over the last 14 candles and boils it down to a single number between 0 and 100. Big gains push it toward 100, big losses toward 0. Think of it as a thermometer for how one-sided recent selling or buying has been.
When does it fire? — BaroBara criteria
On barobara, this signal lights up when the 14-candle RSI drops below 30.
How traders usually read it
Many traders treat readings under 30 as a zone where too much selling happened too fast. The hope is that sellers are running out of steam and price might bounce back, which is why this is a go-to signal for people hunting for rebound spots.
What to watch out for
In a strong downtrend, RSI can sit in oversold territory for a long time while price keeps falling. Below 30 doesn't mean a bounce is coming — it only means a lot of selling already happened. Check the historical stats to see how often it actually worked out.
What the data actually shows (APT 1h)
The common reading is a bounce (up) — but what actually happened matters more. This signal has fired 351 times on APT 1h; across the most recent 300, price reached the small target (+0.25%) first about 46% of the time. Widen the target to ±1% and it becomes about 49%. A historical probability, not a guaranteed direction — and it shifts with market regime.
Odds and expected value — with symmetric target and stop (±)
Exactly the barobara framing: which side got hit first, +X% or −X%. Target and stop are set to the same %, and the win rate is how often the upside (+X%) was reached first.
| Target = stop (±) | Win rate (+ first) | EV (before fees) |
|---|---|---|
| ±0.25% | 46% | -0.02% |
| ±0.5% | 50% | +0.00% |
| ±0.75% | 50% | +0.00% |
| ±1% | 49% | -0.02% |
| ±1.5% | 45% | -0.15% |
| ±2% | 48% | -0.08% |
Broken down by market regime
⚠️ This table uses a different basis than the symmetric (±) table above — a small +0.25% target with a wide −2.5% stop (fees included). The small target makes the win rate look high while EV is often negative — exactly what signal groups hide. And the same signal behaves differently across regimes.
| Regime | Win rate (+0.25% target) | EV (−2.5% stop) | Sample |
|---|---|---|---|
| Bear market | 87% | -0.19% | N=135 |
| Sideways | 83% | -0.29% | N=113 |
| Bull market | 81% | -0.35% | N=94 |
Recent occurrences
How far price actually moved the last few times this signal fired (MFE = maximum favorable excursion).
| Date | MFE | Result |
|---|---|---|
| 2026-07-27 | 0.84% | ✅ hit 🔴 stopped |
| 2026-07-28 | 2.07% | ✅ hit 🔴 stopped |
| 2026-07-29 | 1.4% | ✅ hit 🔴 stopped |
| 2026-07-29 | 3.04% | ✅ hit |
| 2026-08-11 | 2.1% | ✅ hit |
| 2026-08-12 | 1.41% | ✅ hit |
| 2026-08-12 | 2.52% | ✅ hit |
| 2026-08-14 | 0.73% | ✅ hit 🔴 stopped |
Strong conditions only, with past probability, sample size and validity window