$ARIA ｜Daily RSI (14) 81.5｜Overbought
Before discussing capital, let's first understand RSI.
In the classic interpretation, an RSI above 70 is considered overbought, while one below 30 is considered oversold; some traders use 80 / 20 as stricter thresholds.
I generally use RSI as a warning that the market may be overheated or oversold, and look at it alongside support and resistance and trading volume. I don't make decisions based on it alone.
Cross-checking several indicators is more reliable than looking at just one, but even multiple indicators can't provide a definite answer.
#ARIA
Before discussing capital, let's first understand RSI.
In the classic interpretation, an RSI above 70 is considered overbought, while one below 30 is considered oversold; some traders use 80 / 20 as stricter thresholds.
I generally use RSI as a warning that the market may be overheated or oversold, and look at it alongside support and resistance and trading volume. I don't make decisions based on it alone.
Cross-checking several indicators is more reliable than looking at just one, but even multiple indicators can't provide a definite answer.
#ARIA