Market Notes｜$ZEREBRO ｜Daily RSI(14) 78.8｜Overbought
Definition: In traditional usage, an RSI above 70 is considered overbought, while one below 30 is considered oversold. Some traders use 80 / 20 as stricter thresholds.
A note on interpretation: During a strong uptrend, the RSI can stay above 70 for a long time; during a one-way decline, it can also remain below 30 for a long time. Overbought and oversold do not mean an immediate reversal.
The point of understanding an indicator is to be less intimidated by the numbers, not to use it to pinpoint tops and bottoms.
#ZEREBRO
Definition: In traditional usage, an RSI above 70 is considered overbought, while one below 30 is considered oversold. Some traders use 80 / 20 as stricter thresholds.
A note on interpretation: During a strong uptrend, the RSI can stay above 70 for a long time; during a one-way decline, it can also remain below 30 for a long time. Overbought and oversold do not mean an immediate reversal.
The point of understanding an indicator is to be less intimidated by the numbers, not to use it to pinpoint tops and bottoms.
#ZEREBRO