$SHELL | Why the Same RSI Can Show Two Different Numbers
This is what confuses many newcomers: SHELL’s RSI(6) reads 40.16 on the daily chart, but 64.07 on the 1-hour chart. The same asset, the same indicator, two completely different numbers. Is the data wrong? No.
RSI isn’t a single number for an asset. It’s calculated separately for each timeframe you choose, using only the candles from that timeframe. The daily RSI looks at the most recent 6 daily candles; the 1-hour RSI looks at the most recent 6 hourly candles. They’re answering two different questions: how SHELL has moved over the past 6 days compared with the past 6 hours.
That’s why looking at just one timeframe and treating it as the asset’s “RSI” misses part of the picture.
#SHELL #TradingEducation #ChartAnalysis
This is what confuses many newcomers: SHELL’s RSI(6) reads 40.16 on the daily chart, but 64.07 on the 1-hour chart. The same asset, the same indicator, two completely different numbers. Is the data wrong? No.
RSI isn’t a single number for an asset. It’s calculated separately for each timeframe you choose, using only the candles from that timeframe. The daily RSI looks at the most recent 6 daily candles; the 1-hour RSI looks at the most recent 6 hourly candles. They’re answering two different questions: how SHELL has moved over the past 6 days compared with the past 6 hours.
That’s why looking at just one timeframe and treating it as the asset’s “RSI” misses part of the picture.
#SHELL #TradingEducation #ChartAnalysis