Today, I show the insider trading strategy of top memecoins swing traders: the RSI indicator. Most memecoin traders don’t even know such an indicator exists, but the best swing traders, both on Raydium and on Pump Fun, use RSI as a method of perfectly predicting the tops and buying the bottoms.

Some traders use the Relative Strength Index, or RSI, as an indicator of 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 time frames: 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 at predicting peaks and dips

Most powerful in combination with fundamental analysis and conviction in the underlying asset. Fundamental Analysis: That is, make sure the story is good, and a lot of attention lies in, for example, Twitter or in 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:

• Should not be used in isolation
• Need to consider fundamentals and narratives first
• Less effective on heavily manipulated tokens (e.g. bundled tokens)