Market Notes｜$ZEREBRO ｜Daily RSI (14) 78.8｜Overbought
First, the definition: “Overbought” means that prices have risen sharply and quickly in the short term. It does not mean there are too many buyers, nor does it mean prices are about to fall.
Next, how to read it: RSI is calculated from past prices and reflects the strength of past price movements. It cannot tell us what will happen next.
Comparing several indicators is more reliable than looking at just one, but even multiple indicators cannot give us a definitive conclusion.
First, the definition: “Overbought” means that prices have risen sharply and quickly in the short term. It does not mean there are too many buyers, nor does it mean prices are about to fall.
Next, how to read it: RSI is calculated from past prices and reflects the strength of past price movements. It cannot tell us what will happen next.
Comparing several indicators is more reliable than looking at just one, but even multiple indicators cannot give us a definitive conclusion.