Indicator Notes | $ICNT | 4-hour RSI(14) 80.3 | Overbought
Definition: In formula terms, RS equals average gain ÷ average loss, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder smoothing, not a simple arithmetic mean.
Common interpretation: “Divergence” is a commonly discussed way to interpret RSI: when the price makes a new high but RSI doesn’t, it’s often seen as a sign that upward momentum is weakening. But divergence can also persist for a long time.
The point of understanding an indicator is to avoid being spooked by the numbers, not to use it to predict tops and bottoms.
#ICNT
Definition: In formula terms, RS equals average gain ÷ average loss, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder smoothing, not a simple arithmetic mean.
Common interpretation: “Divergence” is a commonly discussed way to interpret RSI: when the price makes a new high but RSI doesn’t, it’s often seen as a sign that upward momentum is weakening. But divergence can also persist for a long time.
The point of understanding an indicator is to avoid being spooked by the numbers, not to use it to predict tops and bottoms.
#ICNT