Since you're scalping ESM5 on a 500T chart with RSI (3, Close), let's optimize it for faster, more accurate signals. Here’s the breakdown:

1. RSI (3, Close) for Scalping: Pros & Cons
✅ Why It Works
Lightning-fast signals (3-period reacts instantly to price changes).

Fits the ultra-short-term nature of 500T scalping.

"Close" input avoids noise from wicks.

❌ Pitfalls to Fix
Whipsaws in choppy markets (false overbought/oversold signals).

Lags slightly vs. price (since it uses closing values).

2. Optimal RSI (3) Settings for 500T Scalping
Setting	Recommended Value	Why?
Length	3	Matches 500T speed.
Input	Close (default)	Cleanest for scalping.
Overbought	70 → Lower to 65	Fewer false signals.
Oversold	30 → Raise to 35	Fewer false signals.
Smoothing	None (RSI raw)	Avoid lag from MA smoothing.
🔹 How to Adjust:

Right-click RSI → "Settings".

Modify values as above → Click "OK".

3. Advanced Tweaks (For Fewer False Signals)
A. Change Input to "Median Price" (H+L)/2
Why? Incorporates high/low volatility, reducing whipsaws.

How: In RSI settings → Change "Input" to Median Price.

B. Add a 2-Period SMA to RSI (Smoothing)
Why? Softens extreme spikes without adding lag.

How:

Add "Moving Average" indicator to your chart.

Set:

Input = RSI (select your RSI line).

Period = 2.

Type = SMA.

RSI (3) + 2 SMA Example
(Raw RSI in purple, smoothed RSI in orange—trade crossovers.)

4. How to Trade RSI (3) on 500T
Long Scalp Setup
Price > VWAP + 9 EMA.

RSI (3) dips below 35 → Buy when it crosses back up.

Exit: RSI > 65 or price hits 2-tick profit.

Short Scalp Setup
Price < VWAP + 9 EMA.

RSI (3) spikes above 65 → Sell when it crosses back down.

Exit: RSI < 35 or price hits 2-tick profit.

5. When to Ignore RSI (3) Signals
Choppy markets: If VWAP is flat and price keeps crossing it, RSI will whipsaw.

High-impact news: RSI becomes unreliable during events like NFP.

6. Pro Tip: Combine with Order Flow
Confirm RSI signals with:

Bid/Ask Volume Imbalance (DOM or footprint).

Cumulative Delta (green/red bars).

Final Checklist
✅ RSI (3) length + tightened OB/OS levels (65/35).
✅ Input = Close or Median Price (test both).
✅ Optional: Add 2-period SMA to smooth RSI.
✅ Only trade RSI signals aligned with VWAP/EMA trend.

Need help testing this live? Let me know—I’ll guide you through a real-time example! 🚀