65-Day Academy · Day 23 · Technical Analysis
RSI Range Shifts — Brown's Framework
The ranges move
Bull markets: RSI bottoms near 40–50, tops blow through 80. Bear markets: rallies die at 50–60, bottoms reach 20–30. When a market's RSI consistently STOPS at a new zone (e.g., every rally dying at 55), the RANGE ITSELF has shifted — often the first quantitative evidence the regime changed, before price structure fully breaks.
The practical read
Track where RSI has been finding support/resistance over the last 3–6 months. That observed band, not the textbook 70/30, is your oscillator's operating manual for THIS market. When the band breaks — say, RSI finally holds above 60 on a pullback after months of failing there — treat it as a regime signal.
What you'll practise
True or false: if RSI has failed at ~55 on every rally for four months, a rally that holds RSI above 60 on its first pullback is a potential regime-change signal.
10 XP in the app · introductory
Sources
- Technical Analysis for the Trading ProfessionalConstance Brown
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All lessons are for educational purposes only and are not individualized financial advice, a recommendation, or a solicitation to buy or sell any security. Options involve substantial risk and are not suitable for every investor.