This indicator aims to anticipate an upward or downward movement after the price has ceased to be oversold or overbought, which indicates a potential normalization of price action following a sharp change in its direction.

Buying an asset when it is oversold is not always a good idea, as the price may continue to decline steadily and remain oversold. This is where the RSI limit signal comes into play, telling us when it appears that an asset is about to start its recovery. (This applies when the signal is below the candle; if the signal is above the candle, it is the opposite.)

It is important to pay attention to this signal while the candle is in progress, as these recoveries tend to be strong. If you detect this signal after a large candle, it is better to place limit orders to get a better price.

This indicator can be used in conjunction with the Warning/Attention Signal and RSI Limits Extreme Lines indicators.

<aside> 💡 Update: RSI Limits historical accuracy is now included in Mixed Info Table

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Using RSI Limits and RSI limits line to detect opportunities.