$ARIA ｜Daily RSI(14) 76.7｜Overbought
Before discussing capital flows, let's first understand RSI.
RSI is calculated using closing prices only; it doesn't take trading volume into account, nor does it reflect the wicks that form mid-candle.
Overbought and oversold readings on the daily timeframe generally carry more weight than those on the 4-hour timeframe. Signals occur more frequently on shorter timeframes, but so does noise.
The point of understanding this indicator is to be less spooked by numbers, not to use it to pinpoint tops and bottoms.
Before discussing capital flows, let's first understand RSI.
RSI is calculated using closing prices only; it doesn't take trading volume into account, nor does it reflect the wicks that form mid-candle.
Overbought and oversold readings on the daily timeframe generally carry more weight than those on the 4-hour timeframe. Signals occur more frequently on shorter timeframes, but so does noise.
The point of understanding this indicator is to be less spooked by numbers, not to use it to pinpoint tops and bottoms.