Technical note | $US | 4-hour RSI(14) 78.6 | Overbought
Definition: In the traditional interpretation, an RSI above 70 is considered overbought, while one below 30 is considered oversold; some people use 80 / 20 as stricter thresholds.
How to read it: When the RSI reaches an extreme zone, a more prudent approach is to first ask yourself: What is the broader trend? Where is the nearest support? Can my position withstand a move in the opposite direction?
All indicators describe market movements that have already happened, and prices can certainly move in the opposite direction.
#US
Personal notes, not specific buy or sell recommendations.
Definition: In the traditional interpretation, an RSI above 70 is considered overbought, while one below 30 is considered oversold; some people use 80 / 20 as stricter thresholds.
How to read it: When the RSI reaches an extreme zone, a more prudent approach is to first ask yourself: What is the broader trend? Where is the nearest support? Can my position withstand a move in the opposite direction?
All indicators describe market movements that have already happened, and prices can certainly move in the opposite direction.
#US
Personal notes, not specific buy or sell recommendations.