Indicator notes | $BTW | Daily RSI (14) 75 | Overbought
First, the definition: In classic usage, an RSI above 70 is considered overbought, while a drop below 30 is considered oversold. Some traders use 80 / 20 as stricter thresholds.
Next, how to read it: I personally treat the RSI as a signal that the market may be overheated or oversold, and look at it together with support and resistance levels and trading volume. I don't rely on it alone to place trades.
Keep plenty of margin for futures positions, so one sudden swing doesn't wipe out your position.
First, the definition: In classic usage, an RSI above 70 is considered overbought, while a drop below 30 is considered oversold. Some traders use 80 / 20 as stricter thresholds.
Next, how to read it: I personally treat the RSI as a signal that the market may be overheated or oversold, and look at it together with support and resistance levels and trading volume. I don't rely on it alone to place trades.
Keep plenty of margin for futures positions, so one sudden swing doesn't wipe out your position.