Technical notes｜$UNI ｜4-hour RSI(14) 24.7｜Oversold
First, the definition: mathematically, RS equals average gain ÷ average loss, and RSI = 100 − 100 ÷ (1 + RS); the averages use Wilder smoothing, not a simple arithmetic mean.
As for how to read it: I generally use RSI as an indication of overbought or oversold conditions, and consider it alongside support and resistance levels and trading volume. I don’t place trades based on it alone.
Calculating position size based on where the stop-loss is placed is much more reliable than just guessing.
#UNI
First, the definition: mathematically, RS equals average gain ÷ average loss, and RSI = 100 − 100 ÷ (1 + RS); the averages use Wilder smoothing, not a simple arithmetic mean.
As for how to read it: I generally use RSI as an indication of overbought or oversold conditions, and consider it alongside support and resistance levels and trading volume. I don’t place trades based on it alone.
Calculating position size based on where the stop-loss is placed is much more reliable than just guessing.
#UNI