A note: $S has a daily RSI of 76.9, entering overbought territory.
People often ask how to interpret RSI. Here’s how I think about it.
Traditionally, an RSI above 70 is considered overbought, and below 30 oversold; some traders use 80 / 20 as more extreme thresholds.
I generally use RSI as a signal that sentiment may be overheated or overly subdued, and consider it alongside support and resistance levels and trading volume. I don’t rely on it alone to make trades.
Don’t let a single indicator derail your original plan, and never gamble with borrowed money based on one reading.
#S
People often ask how to interpret RSI. Here’s how I think about it.
Traditionally, an RSI above 70 is considered overbought, and below 30 oversold; some traders use 80 / 20 as more extreme thresholds.
I generally use RSI as a signal that sentiment may be overheated or overly subdued, and consider it alongside support and resistance levels and trading volume. I don’t rely on it alone to make trades.
Don’t let a single indicator derail your original plan, and never gamble with borrowed money based on one reading.
#S