RSI, the course way
- Above 70: stretched to the upside. Above 90: the zone where past crypto tops have formed; the author treats it as the place to reduce exposure, never add.
- Below 30: stretched to the downside. The author looks for long setups here on the daily and four-hour, with the rest of the checklist in agreement.
- 50: the midline. Above it momentum is bullish, below it bearish.
- Below the four-hour, RSI gets noisy. The course does not read it there.
Bearish divergence
Price makes a higher high. RSI makes a lower high. Momentum is fading while price is still climbing. It is a warning, not a trigger; divergences can stack three or four times before a top.
Bullish divergence
Price makes a lower low. RSI makes a higher low. Selling is losing force. Same rule: a warning that improves the odds of a turn, not a turn.
MACD
Standard 12, 26, 9. Histogram green means bullish momentum, red bearish. The MACD line crossing above its signal is bullish, below it bearish. The histogram shrinking while price keeps going is MACD's version of divergence.
Combining them into one checklist
The course treats these as a checklist, not a vote:
- Long side: RSI bullish divergence, MACD histogram flipping green, price holding a support zone.
- Short side: RSI bearish divergence, MACD histogram flipping red, price rejected at resistance.
Three boxes ticked is a setup worth planning. It is still not a certainty, and this course never calls it one.
In the lab
Switch on RSI, MACD and the auto zones on the weekly. Find the last time all three agreed at a zone, write the date and what happened over the next four weeks in your journal. Then do the same for a time only one of them spoke. The difference is why the course insists on confluence.