$AVA Daily RSI is 83.2, entering overbought territory.
How is this number calculated?
By the classic interpretation, an RSI above 70 is considered overbought, while a drop below 30 is considered oversold. Some people use 80 / 20 as stricter thresholds.
I generally treat RSI as a signal that sentiment may be overheated or overly pessimistic, and look at it alongside key price levels and trading volume. I don't make decisions based on it alone.
Sizing your position based on where you place your stop-loss is much steadier than trading on gut feel.
Make your own decisions about buying and selling; don't follow others blindly.
How is this number calculated?
By the classic interpretation, an RSI above 70 is considered overbought, while a drop below 30 is considered oversold. Some people use 80 / 20 as stricter thresholds.
I generally treat RSI as a signal that sentiment may be overheated or overly pessimistic, and look at it alongside key price levels and trading volume. I don't make decisions based on it alone.
Sizing your position based on where you place your stop-loss is much steadier than trading on gut feel.
Make your own decisions about buying and selling; don't follow others blindly.