Memecoin Swing Traders Abuse This Secret to Sell Every Top

Today, I’m sharing an insider trading strategy used by top memecoins swing traders – the RSI indicator. Most memecoin traders don’t even know that this indicator exists but the best swing traders, both on Raydium and on Pump Fun are using RSI as a method of perfectly predicting the tops and buying the bottoms.

RSI (Relative Strength Index) is a technical indicator used by some traders to measure momentum in price movements:

When RSI is over 70, it indicates “overbought” conditions (time to consider selling)
When RSI is under 30, it indicates “oversold” conditions (time to consider buying)

Usage and effectiveness:

Works on multiple timeframes (1 second, 1 minute, 3 minutes, etc.)
Works across different market capitalizations (e.g. on pump from around 20k market cap to 1bn+ market cap)
About 70% accuracy in predicting peaks and dips
Most effective when combined with fundamental analysis and conviction in the underlying asset. By fundamental analysis, this is making sure that the narrative is good and there is a lot of attention e.g. on twitter or on alpha groups for the coin.

How to use it:

Can be used for “clipping” (taking partial profits)
Some traders use it for full swing trading
Most effective when there’s good volume and natural price movements
Most reliable during sideways price action – this is the key usage of RSI for sideways swing trading.
May not be as useful for coins that are trending heavily. E.g. coins with way too much buy pressure or where people have a very strong incentive to hold.

Important caveats: