$SIREN Daily RSI is 80.4, entering overbought territory, with the current price at 0.03328.
When I first started learning technical analysis, I wanted to sell as soon as I saw an overbought RSI. It took me a while to understand: an RSI above 70 is considered overbought, which simply means that gains have made up a large share of price movements during this period. In a one-way market, it can stay elevated for a long time; an overbought reading is not an exit signal.
RSI tends to work better in ranging markets, while in trending markets it often gives countertrend signals too early.
Indicators can be wrong, but risk management can't be neglected: deciding in advance what to do if your judgment is wrong is more important than predicting correctly.
#SIREN
When I first started learning technical analysis, I wanted to sell as soon as I saw an overbought RSI. It took me a while to understand: an RSI above 70 is considered overbought, which simply means that gains have made up a large share of price movements during this period. In a one-way market, it can stay elevated for a long time; an overbought reading is not an exit signal.
RSI tends to work better in ranging markets, while in trending markets it often gives countertrend signals too early.
Indicators can be wrong, but risk management can't be neglected: deciding in advance what to do if your judgment is wrong is more important than predicting correctly.
#SIREN