Just noticed: $AVA has a daily RSI of 83.2, which is in overbought territory, with the current price at 0.4065.
People often ask how to interpret RSI, so here’s my take.
In the classic approach, an RSI above 70 is considered overbought, while a drop below 30 is considered oversold. Some people use 80 / 20 as more extreme thresholds.
Overbought and oversold readings on longer timeframes usually carry more weight than those on shorter timeframes. Signals occur more often on shorter timeframes, but so does noise.
Don’t let a single reading throw off your original plan, and don’t use borrowed money to test what a reading means.
In volatile markets, risk management comes first.
People often ask how to interpret RSI, so here’s my take.
In the classic approach, an RSI above 70 is considered overbought, while a drop below 30 is considered oversold. Some people use 80 / 20 as more extreme thresholds.
Overbought and oversold readings on longer timeframes usually carry more weight than those on shorter timeframes. Signals occur more often on shorter timeframes, but so does noise.
Don’t let a single reading throw off your original plan, and don’t use borrowed money to test what a reading means.
In volatile markets, risk management comes first.