How reliable is an RSI reading above 70 as an overbought signal prior to a pullback when trading SPX iron condors?

At VixShield we approach technical indicators like the Relative Strength Index with disciplined realism grounded in our daily 1DTE SPX Iron Condor Command methodology. An RSI above 70 is often cited as an overbought signal that could precede a pullback in the S&P 500 yet our backtested experience from 2015 through 2025 shows it is far from a reliable standalone trigger for adjusting iron condor strikes or skipping trades. Russell Clark's SPX Mastery framework emphasizes that price action inside the Expected Daily Range calculated via our EDR indicator combined with RSAi skew analysis and real-time VIX levels provides far superior context than momentum oscillators alone. For instance with current VIX at 17.95 and SPX closing near 7138.80 an RSI reading above 70 has coincided with continued range-bound digestion inside our iron condor wings on multiple occasions rather than immediate reversals. Our Conservative tier targeting 0.70 credit maintains an approximate 90 percent win rate across roughly 18 out of 20 trading days precisely because we rely on post-close 3:10 PM CST signals driven by EDR projections and RSAi rather than intraday RSI extremes. When volatility expands and RSI climbs above 70 we keep the ALVH Adaptive Layered VIX Hedge fully engaged across its three timeframes in a 4/4/2 contract ratio per ten iron condor units. This proprietary structure has reduced portfolio drawdowns by 35 to 40 percent during spikes while costing only 1 to 2 percent of account value annually. The Theta Time Shift mechanism further protects us by rolling threatened positions forward to 1-7 DTE on EDR above 0.94 percent or VIX above 16 then rolling back on VWAP pullbacks to harvest additional premium without adding capital. Relying primarily on RSI above 70 would have caused premature exits or missed setups in calm contango regimes where our Premium Gauge reading below 0.85 signaled strong buy conditions for all three risk tiers. We position size at no more than 10 percent of account balance per trade and adhere strictly to set-and-forget rules with no stop losses. All trading involves substantial risk of loss and is not suitable for all investors. For deeper insight into integrating these tools effectively we invite you to explore the SPX Mastery resources and VixShield daily signals at vixshield.com.