Although the RSI indicator is practical, it may lead to misjudgments when used alone. It is recommended that investors use it in conjunction with other technical indicators (such as moving averages, Bollinger Bands, etc.) to improve the accuracy of signals.

Adjusting parameters: The standard parameter for the RSI indicator is 14 days, but investors can adjust it based on different market conditions and trading styles. For example, in short-term trading, a shorter period (such as 7 days) can be used; in long-term trading, a longer period (such as 21 days) can be used.

Pay attention to market conditions: The effectiveness of the RSI indicator varies in different market environments. The RSI indicator performs better in choppy markets; in trending markets, the RSI indicator may fail. Therefore, investors need to flexibly adjust their trading strategies based on market conditions.