How I Use RSI to Confirm Cycle Analysis EntriesAustralian Dollar vs US DollarBLACKBULL:AUDUSDKenayiRSI is not what I use to identify the cycle. I use FractalCycles to identify the potential cycle trough or peak. RSI then tells me whether that cycle is actually behaving as expected. I use RSI(40), with 40, 50, and 60 as important reference levels. However, the level itself is not the signal. What I am looking for is structure and follow-through. For a potential BUY: RSI low → bullish move → retracement → hold → bullish follow-through For a potential SELL: RSI high → bearish move → retracement → hold → bearish follow-through This is why several areas on the chart are marked: “No valid RSI signal here. No follow-through.” i.e we need momentum confirmation. RSI may be at an interesting level or may initially move in the expected direction. However, if the move does not develop the required structure and follow-through, I do not consider the RSI confirmation valid. The 13 August, 17 August, and 19 August examples show this concept from different angles. Once RSI confirms the expected cycle behaviour, I turn back to price for the actual execution level. This is typically done using a BUY Stop or SELL Stop beyond the relevant price structure. So, in simple terms, my Cycle Analysis work identifies the potential opportunity, while RSI is used to confirm whether the cycle is behaving as expected. Once that confirmation is in place, I return to the price structure to determine the actual entry point. The important distinction is that I am not treating a particular RSI level as a signal. Instead, I am looking at how RSI behaves around those levels and whether that behaviour provides the confirmation I am looking for. There is also another layer to how I use RSI, which involves tracking fractals and cycles themselves and understanding how they interact with the underlying price cycle structure. That is a broader topic and deserves its own discussion. For this chart, the key point is that an RSI move without the required follow-through does not provide valid confirmation. I only consider the RSI signal confirmed when the expected behaviour develops and the move provides enough evidence for me to begin looking for the corresponding price entry. Disclaimer: This is for educational purposes only and is not financial advice. Trading involves risk, and any decisions you make are your own responsibility.