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

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

Pay Attention to Market Conditions: The effectiveness of the RSI indicator varies in different market conditions. It performs better in a range-bound market; in a trending market, the RSI indicator may become ineffective. Therefore, investors need to flexibly adjust their trading strategies based on market conditions.