$ICNT ｜4-hour RSI(14) 79.4｜Overbought
Before discussing capital, let’s first understand RSI.
The 14 in RSI refers to 14 candlesticks: on a 4-hour chart, that covers just over two days (56 hours), while on a daily chart, it covers exactly two weeks.
Extreme readings on the daily chart generally carry more weight than those on the 4-hour chart. Shorter time frames produce more readings—and more false signals.
Rare readings are usually accompanied by greater volatility. At times like these, it’s better to reduce your position size than to make a heavy bet.
Before discussing capital, let’s first understand RSI.
The 14 in RSI refers to 14 candlesticks: on a 4-hour chart, that covers just over two days (56 hours), while on a daily chart, it covers exactly two weeks.
Extreme readings on the daily chart generally carry more weight than those on the 4-hour chart. Shorter time frames produce more readings—and more false signals.
Rare readings are usually accompanied by greater volatility. At times like these, it’s better to reduce your position size than to make a heavy bet.