Market Cipher B/
RSI
TL;DR
The RSI (Relative Strength Index) in Market Cipher B is plotted as a white line, oscillating within the same panel. It measures the speed and magnitude of recent price changes, flagging overbought (above 70) and oversold (below 30) conditions that often coincide with liquidity sweeps.
How It Works
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RSI is calculated as a ratio of average gains to average losses over a lookback period (typically 14 bars).
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RSI above 70 signals overbought conditions — price has moved up faster than historical average, increasing reversal probability.
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RSI below 30 signals oversold conditions — price has moved down faster than historical average, increasing bounce probability.
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In strong trends, RSI can remain in overbought/oversold territory for extended periods — context is critical.
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The 50 level acts as a trend bias marker: above 50 = bullish momentum, below 50 = bearish momentum.
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RSI divergences (price makes new high, RSI does not) are among the most reliable reversal signals in the MCB suite.
LiquidMind integrates RSI extremes as a momentum filter for POI entries. An RSI reading below 30 at a Demand Zone or Breaker Block materially increases trade confidence — it confirms that the recent move was an overextension, not a trend establishment. Conversely, RSI above 70 in a Supply Zone confirms distribution pressure. The system also monitors RSI crossovers of the 50 level to detect trend regime changes in real time.