$TRUTH 's daily RSI is 78.6, in overbought territory.
When I was first learning technical analysis, I’d sell as soon as I saw an overbought RSI. It took me a while to understand that “overbought” only means prices have risen too quickly and too sharply recently. During a one-way rally, the RSI can stay above 70 for a long time; that doesn’t mean a pullback is imminent.
Many people pay more attention to the moment the RSI leaves the overbought or oversold zone—for example, when it falls back below 70 after being above it—rather than going against the trend as soon as it enters the zone.
Unusual readings often come with bigger swings. That’s when it’s more important to reduce leverage, not add to your position.
When I was first learning technical analysis, I’d sell as soon as I saw an overbought RSI. It took me a while to understand that “overbought” only means prices have risen too quickly and too sharply recently. During a one-way rally, the RSI can stay above 70 for a long time; that doesn’t mean a pullback is imminent.
Many people pay more attention to the moment the RSI leaves the overbought or oversold zone—for example, when it falls back below 70 after being above it—rather than going against the trend as soon as it enters the zone.
Unusual readings often come with bigger swings. That’s when it’s more important to reduce leverage, not add to your position.