$JCT 4-hour RSI is at 75, in overbought territory.
Let’s break down RSI using this data.
The 14 in RSI(14) refers to 14 candles: on a 4-hour chart, that covers just over two days (56 hours); on a daily chart, it’s exactly two weeks.
Extreme readings on the daily chart generally carry more weight than those on the 4-hour chart. Signals occur more often on shorter timeframes, and there’s more noise too.
Indicators can fail, so don’t skip risk management: deciding in advance what to do if you’re wrong is more important than guessing right.
Just chatting—not financial advice.
Let’s break down RSI using this data.
The 14 in RSI(14) refers to 14 candles: on a 4-hour chart, that covers just over two days (56 hours); on a daily chart, it’s exactly two weeks.
Extreme readings on the daily chart generally carry more weight than those on the 4-hour chart. Signals occur more often on shorter timeframes, and there’s more noise too.
Indicators can fail, so don’t skip risk management: deciding in advance what to do if you’re wrong is more important than guessing right.
Just chatting—not financial advice.