---
title: RSI Filter
description: "  [![](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-Buy.png)](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-Buy.png) [![](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-Sell.png)](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-Sell.png)   This filter looks at an instrument's RSI (Relative Strength Index) during the past certain period, to decide whether that instrument will be bought/sold. RSI is a momentum oscillator that indicates whether an instrument is being \"overbought\"…"
url: "https://portfolioboss.com/documentation/rsi-filter/"
updated: "2022-08-27"
category: "Chapter 7 - Filters & Rules"
---

# RSI Filter

 

[![](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-Buy.png)](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-Buy.png)

[![](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-Sell.png)](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-Sell.png)

 

This filter looks at an instrument's RSI (Relative Strength Index) during the past certain period, to decide whether that instrument will be bought/sold.

RSI is a momentum oscillator that indicates whether an instrument is being "overbought" (overpriced) or "oversold" (underpriced), thus it can tell you of an impending trend change.

RSI oscillates between 0% and 100%. Generally, an RSI of 70% or higher means the instrument is "overbought", so it will experience a pullback or correction (however small or quick). An RSI of about 30% or less means the instrument is "oversold", so it will experience a rally (however small or quick).

But these are just a general rule of thumb, since RSI may also generate false signals. So, it's best to use this filter with another filter, for example a [moving average filter](https://portfolioboss.com/documentation/moving-average-cross-over-filter/) or the [Primitive Pattern filter](https://portfolioboss.com/documentation/primitive-pattern-filter/) so you know what trend the instrument is currently at.

 

[![](https://portfolioboss.com/wp-content/uploads/2019/10/AMD-RSI_00000.png)](https://portfolioboss.com/wp-content/uploads/2019/10/AMD-RSI_00000.png)

During an *uptrend*, an RSI of 30% or less usually signals a rally (after a pullback); whereas during a *downtrend*, an RSI of 70% or higher usually signals a reversal (after a peak). So, it's best to enter Positions whenever these instruments reach those RSI values.

Another school of thought uses the RSI as a trend confirmation: during an uptrend, the RSI may go above 70% for an extended period of time, whereas during a downtrend the RSI may go below 30% for an extended period.

 

---

 

The parameters for this filter are:

 

**1.**  The first parameter, "x days", defines the period to look for the RSI, usually it is 14 days.

 

[![](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-1st-Param.png)](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-1st-Param.png)

 

---

**2.**  The second parameter, "Greater than/Less than/Between/Not between", defines where the instrument's RSI must fall in relation to the *threshold* RSI, for that instrument to be considered.

 

[![](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-2nd-Param.png)](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-2nd-Param.png)

 

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**3.**  The third parameter, "n percent", defines the *threshold* RSI that you want. 

 

[![](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-3rd-4th-Param.png)](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-3rd-4th-Param.png)

 

Generally, it's set at either 70% or 30%. But you can also set it at a maximum and minimum RSI values that you want, which means the instrument must fall *between* such RSI values, that is, if you use "Between" in the previous parameter.

If you use "Not Between", you're looking for instruments whose RSI falls *outside* the minimum and maximum threshold.

 

---

 

#### Note:

 

Using this filter will display an RSI indicator *below* the instrument's [Price Chart](https://portfolioboss.com/documentation/instrument-tab/). If it doesn't show up, hover your mouse just below the Price Chart until you see the cursor changes into a vertical arrow, then drag that edge upward so the RSI chart shows up entirely.

 

[![](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-Indicator.png)](https://portfolioboss.com/wp-content/uploads/2019/10/RSI-Filter-Indicator.png)

 

 

 

 

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