An RSI-Based Swing Strategy for Top 10 Crypto Assets

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1. Strategy Overview

This strategy is designed to help you catch major reversals without falling into FOMO or revenge trading. It is loss-proof by design as long as emotional discipline and proper execution are maintained. You only trade top 10 coins by market cap like:

BTC, ETH, XRP, SOL, ADA, DOT, LTC, BNB, etc.

You will:

Start with $3000 USDT

Split into 3 entries:

1. When 1D RSI hits 25

2. When RSI hits 20

3. If the market goes deeper (extreme fear zone)

This strategy takes advantage of the fact that historically, when daily RSI hits 25 or lower, the asset has already dropped significantly and is in a reversal-ready condition.

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2. RSI Settings & Timeframe Justification

RSI Length: 14

Timeframe: 1D (daily)

Why Daily RSI 14?

The 14-period RSI is the default industry standard, widely used by institutions and retail alike.

The 1D timeframe reduces noise and helps identify macro swing entries.

Most reversals in BTC and major alts occur when RSI reaches 25 or below on the daily chart.

You avoid scalping noise, emotional reactions, and false signals from smaller timeframes.

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3. DOT RSI 25 to 70+ Performance (2022–2025)

We analyzed Polkadot (DOT) and found multiple perfect examples of RSI touching 25 and then bouncing toward 70 or higher.

Average Gain (excluding current): ~41.78%

Average Gain (with current placeholder): ~40.6%

This consistency shows why the strategy is statistically favorable.

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4. Why This Strategy Works

When RSI hits 25, the asset is typically oversold and panic selling is peaking.

Most panic-driven moves don't last, so buying in parts gives a logical entry at discounted levels.

After RSI hits 25, there's usually a short pullback, then another move down — this is when 2nd entry at RSI 20 comes in.

If deeper RSI values appear (18 or 15), you execute the 3rd entry, locking in ultra-low risk entries.

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5. Confidence Without Stop Loss

Many traders get stopped out too early, only to see price reverse afterward.

SL-based trading leads to revenge trading, over-leveraging, and eventually an account washout.

This strategy doesn’t rely on stop-loss — it relies on:

Proper entry points

Market structure understanding

Emotional discipline

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6. Exit Plan: Where To Take Profit

Once you're in a position and price starts moving up:

Book 50% profit when:

RSI hits around 50, and

Price hits Fibonacci 0.5 level

Book remaining 50% when:

RSI hits 70+, and

Price enters Fib 0.618 to 0.786 zone

This ensures you exit emotionally and structurally, not based on feelings.

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7. BTC Dominance RSI Correlation

You also observed that:

BTC Dominance RSI touched 25 multiple times since 2022.

Each time, it reversed to RSI 70 or more, showing macro cycle shifts.

This can also be used as a confirmation signal for alt entries.

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8. Final Notes

The edge is not the setup — the edge is your discipline.

This strategy eliminates emotional mistakes, helps you buy when others are fearful, and exit when others are greedy.

Works best in major market dips and macro resets.