$ERA Daily RSI: 76.5, entering overbought territory.
A beginner’s burning question: What exactly does RSI measure?
The formula is RS = average gain divided by average loss, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder’s smoothing, not a simple arithmetic average.
RSI tends to work better in range-bound markets, but in strong trending markets, it often signals a reversal too early.
Don’t let a single number throw off your strategy, and definitely don’t gamble borrowed money on a hunch.
#ERA
These are personal observations, not investment advice.
A beginner’s burning question: What exactly does RSI measure?
The formula is RS = average gain divided by average loss, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder’s smoothing, not a simple arithmetic average.
RSI tends to work better in range-bound markets, but in strong trending markets, it often signals a reversal too early.
Don’t let a single number throw off your strategy, and definitely don’t gamble borrowed money on a hunch.
#ERA
These are personal observations, not investment advice.