Kathy Lien
BKTraders and Prop Traders Edge
Most traders don't realize that the conventional way they've been taught to use RSI is actually setting them up for failure. After two decades of trading, starting on the JP Morgan Chase trading desk on Wall Street, I've discovered why the widely taught RSI strategy keeps traders getting stopped out while professionals profit from the same indicator. It's time to abandon the textbook approach and master how RSI was truly designed to work.
Key insights:
- Revolutionary RSI strategy: Why buying at 30 and selling at 70 is amateur hour, and how using the 50 level for confirmation creates dramatically better entries with higher win rates.
- Trend-following mastery: Learn why fighting overbought/oversold conditions destroys accounts, and how to ride market momentum instead of catching falling knives during crashes.
- Perfect entry timing: My exact step-by-step method for waiting for market confirmation before entering, eliminating the guesswork that causes most RSI trades to fail immediately.
- Advanced risk management: How to position stops at swing lows and trail with moving averages for 2:1 and 3:1 risk-reward ratios while letting winners run.
This isn't just about tweaking RSI settings - it's about understanding why the market can stay "overbought" or "oversold" much longer than most traders expect. When earnings disappoint or central banks shift policy, there's usually a fundamental reason behind strong directional moves. By waiting for the 50-level confirmation, you're trading WITH the emerging trend instead of against it. Learn why patience eliminates losing trades, how to avoid the trap of premature entries, and the exact mindset shift from "catching reversals" to "confirming momentum." This strategy works across all timeframes and markets because it respects what RSI was originally designed to measure - not predict tops and bottoms, but confirm when momentum is actually shifting in your favor.
Past performance is not indicative of future results. Trading forex carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts.
Editors’ Picks
EUR/USD shifts its attention to 1.1900 and above
EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.
GBP/USD challenges multi-day highs near 1.3530
GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.
USD/JPY Price Forecast: Bulls await move beyond 156.00 amid constructive technical setup
USD/JPY attracts some dip-buyers on Wednesday and seems poised to appreciate further. Delayed BoJ rate cut bets undermine the JPY and offset a weaker USD, supporting the pair. The technical setup also favors bullish traders and backs the case for further appreciation.
Editors’ Picks
AUD/USD looks well bid, retargets 0.7150
AUD/USD adds to Tuesday’s advance and clock strong gains past the 0.7100 hurdle ahead of the opening bell in Asia. Hotter-than-expected Australian inflation data in combination with the RBA’s hawkish stance continue to underpin the move higher in the pair.
EUR/USD shifts its attention to 1.1900 and above
EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.
Gold remains bid and close to $5,200
Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.
UK financial watchdog advances stablecoin oversight as four firms pilot issuance
The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.
Nvidia earnings to influence AI trade and broader market sentiment Premium
For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.
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Top 10 Chart Patterns Every Trader Should Know
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What Are the 10 Fatal Mistakes Traders Make
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The challenge: Timing the market and trader psychology
Successful trading often comes down to timing – entering and exiting trades at the right moments. Yet timing the market is notoriously difficult, largely because human psychology can derail even the best plans. Two powerful emotions in particular – fear and greed – tend to drive trading decisions off course.