$BTW 4-hour RSI is 75.1, entering overbought territory, with the current price at 1.9295.
When I first started learning technical analysis, I wanted to sell as soon as I saw an overbought RSI. Later, I understood that an RSI above 70 is called overbought simply because recent upward momentum accounts for a large share of price movements. In a strong trend, it can stay elevated for a long time, so an overbought reading isn’t an exit signal.
Extreme readings on the daily chart usually carry more weight than those on shorter timeframes. Readings occur more often on the 4-hour chart, and so do false signals.
The same data can mean very different things in different market conditions, so don’t apply any one rule blindly.
#BTW
When I first started learning technical analysis, I wanted to sell as soon as I saw an overbought RSI. Later, I understood that an RSI above 70 is called overbought simply because recent upward momentum accounts for a large share of price movements. In a strong trend, it can stay elevated for a long time, so an overbought reading isn’t an exit signal.
Extreme readings on the daily chart usually carry more weight than those on shorter timeframes. Readings occur more often on the 4-hour chart, and so do false signals.
The same data can mean very different things in different market conditions, so don’t apply any one rule blindly.
#BTW