The default RSI(14) is the right starting point for most traders, but it’s not optimal for every style. After 16 years running RSI across scalping, day trading, and swing trading, I’ve ended up using three different RSI configurations on different chart templates. The right settings depend on what you’re trying to read and how fast you need to read it.

This guide covers the period values, overbought/oversold thresholds, and applied price settings I run for each style — plus the reasoning behind each choice and when you should deviate from the defaults.

The Three Settings I Actually Use

Table of Contents

Style	Period	OB Level	OS Level	Applied Price	Best Timeframes
Scalping	7	80	20	Close	M1, M5
Day Trading	14	70	30	Close	M15, M30, H1
Swing Trading	21	70	30	Close	H4, D1

If you only remember one row from this article, make it the Day Trading row — RSI(14) with 70/30 thresholds on H1. That’s the most-tested, most-versatile RSI setup in technical analysis. The other rows are refinements for specific use cases.

Settings Comparison: Same Chart, Different Periods

The same EURUSD H1 chart with three RSI variants stacked:

RSI(7) — fast, choppy. Frequently reaches 80 and 20 in scalp-grade moves. Lots of signals, lots of noise. Catches turns 1-2 bars before RSI(14).

RSI(14) — balanced, smooth. Reaches 70/30 a few times per day on H1. Cleanest divergence signals. Default for a reason.

RSI(21) — slow, trend-focused. Rarely reaches OB/OS extremes during normal sessions. The 50-line acts as the primary signal level. Best for staying in trades through pullbacks.

Why Period 14 Is the Default

Wilder’s original RSI used a 14-period lookback because that approximated half a typical trading month (28 trading days). The choice was practical, not mathematically derived — but 14 has held up across decades because it produces the right balance between responsiveness and signal quality on most timeframes.

Specifically, RSI(14):
– Reaches 70/30 thresholds frequently enough to generate trade-able signals (typically 2-5 OB/OS readings per week on H1)
– Doesn’t reach them so often that signals become noise
– Has enough lookback to smooth out single-bar spikes
– Has long enough history that divergence patterns are visible without too much chart real estate

For most traders on most timeframes, RSI(14) is correct. The other settings below are refinements for specific use cases, not improvements.

Scalping: RSI(7) with 80/20 Thresholds

For M1 and M5 scalping, RSI(14) is too slow. By the time RSI hits 70, the move is often over. RSI(7) reaches OB/OS faster — catching scalp-grade reversals before the noise cancels them out.

The threshold adjustment to 80/20 (from 70/30) compensates for RSI(7)’s higher sensitivity. RSI(7) hits 70 frequently on minor swings; using 80 as the sell threshold filters out the noise.

When this works:
– Genuine scalping styles holding trades for minutes
– High-liquidity sessions (London open, NY open, overlap)
– Pairs with tight spreads (EURUSD, GBPUSD, USDJPY)

When to switch back to RSI(14):
– The moment you start holding scalp trades into the next hour
– Choppy/illiquid sessions (Asian, Friday close)
– Pairs with wider spreads where signal-to-noise is poor

Day Trading: RSI(14) with 70/30 Thresholds

The default. M15 to H1 timeframes. The 70/30 thresholds are the most-tested OB/OS levels in technical analysis. Don’t deviate without a specific reason.

When this works:
– All standard day trading on liquid forex pairs
– Any market condition (ranging, trending, transitioning)
– Combined with higher-timeframe trend filter

When to deviate:
– Almost never. If RSI(14) feels wrong, the problem is usually market conditions or timeframe choice, not the RSI settings.

Swing Trading: RSI(21) with 70/30 Thresholds

For H4 and Daily swing trades, RSI(21) is what I run. The longer lookback smooths out the higher-timeframe price movements and gives you a more reliable trend-direction read.

The OB/OS thresholds stay at 70/30 — RSI(21) reaches these less often than RSI(14), but when it does the signal is higher-quality. The 50-line as a trend filter is even more useful on RSI(21) than on RSI(14).

When this works:
– True swing trades held for days to weeks
– H4 and Daily timeframes specifically
– Trend-following style where you want to ride moves longer

When to switch back to RSI(14):
– If you’re really day trading on H4 (entering and exiting same day)
– For pairs that don’t trend cleanly (some Asian crosses)

Applied Price: Why Close Always Wins

MT4’s RSI settings let you change the “Applied Price” from Close to Open, High, Low, Median, Typical, or Weighted. Don’t.

Close is what 99% of traders use, what every textbook reference assumes, and what backtests in any trading platform default to. Changing applied price means your RSI signals don’t match anyone else’s, your divergence patterns don’t line up with educational materials, and your backtest results don’t transfer to other tools.

Stick with Close.

OB/OS Threshold Customisation

I’ve seen traders advocate dozens of OB/OS variations: 80/20, 75/25, 65/35, etc. Most of these come from curve-fitting backtests on specific markets/periods.

In my testing, the only worthwhile variations are:

80/20 with RSI(7) for scalping — compensates for the faster period’s higher sensitivity.

75/25 with RSI(14) during exceptionally high-volatility periods (major news weeks, geopolitical crises) — temporary adjustment, revert to 70/30 when conditions normalise.

Anything else is curve-fitting.

My Recommended Settings Table

Save this table as a reference:

Style	Period	OB	OS	Price	Pairs	Timeframes
Scalping	7	80	20	Close	EURUSD, GBPUSD, USDJPY	M1, M5
Day Trading (default)	14	70	30	Close	All majors + gold	M15, M30, H1
Swing Trading	21	70	30	Close	All majors + gold	H4, D1
News-Volatile Adjustment	14	75	25	Close	Affected pair	Any

How to Apply These Settings on MT4

Right-click on any RSI on your chart > Properties (or apply a fresh RSI from Insert > Indicators > Oscillators > Relative Strength Index).
Parameters tab: set Period to 7/14/21 per your style. Apply To = Close.
Levels tab: delete any existing levels. Add the OB and OS levels per your style.
Visualization tab: uncheck higher timeframes you don’t trade to keep the indicator lightweight.
Click OK.
Right-click chart > Template > Save Template. Name it “RSI-Scalping” or “RSI-Day” or “RSI-Swing.” Reapply with one click whenever needed.

Common Settings Mistakes

Constant period tinkering. If RSI signals aren’t working, the problem is usually market conditions or trade timing, not the RSI period. Pick a setting and stick with it for at least 2 weeks before adjusting.

Aggressive OB/OS levels (60/40 etc.). This catches every minor swing and produces too many false signals. The 70/30 default is what produces tradeable signal frequency.

Different RSI on every chart. Standardise. Use RSI(14) on most charts; switch to (7) or (21) only when you’re deliberately scalping or swing trading.

Custom applied prices. Don’t. Close is the standard for a reason.

Frequently Asked Questions

What is the best RSI setting for day trading?

RSI(14) with 70/30 levels and Close as applied price. Default settings are correct.

What is the best RSI setting for scalping?

RSI(7) with 80/20 levels on M1 and M5. The faster period catches scalp-grade reversals; the wider thresholds filter out noise.

What is the best RSI setting for swing trading?

RSI(21) with 70/30 levels on H4 and Daily. The longer lookback smooths the higher-timeframe price action.

Should I change RSI settings during high-volatility periods?

Optionally – 75/25 thresholds (instead of 70/30) during exceptionally volatile weeks. Revert to 70/30 when conditions normalise.

Are these settings the same on MT5?

Yes. RSI math is identical between MT4 and MT5; the same settings produce the same results.

Best RSI Settings for Scalping, Day Trading & Swing Trading on MT4