Entering when the 14-day RSI isn't stretched (below 70) avoids chasing. A timing overlay on top of trend and momentum.
Even a great long-term name is a poor entry when it’s overbought — stretched far above its recent range after a fast run. RSI(14) above 70 is the common marker. Waiting for RSI to cool below 70 is a simple way to avoid buying the exact top of a spike.
“Not overbought” isn’t an edge on its own — it’s a timing overlay. Trend and momentum say what to own; the RSI filter nudges when, so you’re not paying up right into exhaustion. The measured lift is smaller precisely because it’s a refinement, not a thesis.
Overbought doesn’t mean “sell short” — strong names stay overbought for a long time. It just means “don’t chase here.”