📐 Data snapshot: $MAGIC ｜Daily RSI(14) 75.5｜Overbought
· Definition: RSI is calculated using closing prices only; it does not include trading volume or reflect intraday wicks.
· How to read it: When RSI enters an extreme zone, a more prudent response is to first consider the overall trend, where key support lies, and whether your position can withstand a move in the opposite direction.
Extreme readings are often accompanied by greater volatility. At such times, it’s better to reduce your position rather than add to it.
#MAGIC
· Definition: RSI is calculated using closing prices only; it does not include trading volume or reflect intraday wicks.
· How to read it: When RSI enters an extreme zone, a more prudent response is to first consider the overall trend, where key support lies, and whether your position can withstand a move in the opposite direction.
Extreme readings are often accompanied by greater volatility. At such times, it’s better to reduce your position rather than add to it.
#MAGIC