$Q Daily RSI is 75.3, entering overbought territory.
Let’s use this data to break down RSI.
“Overbought” means prices have risen quickly and sharply recently. It doesn’t mean there are too many buyers, nor does it mean prices are about to fall.
Extreme readings on longer time frames generally carry more weight than those on shorter time frames. Readings on shorter time frames occur more frequently and come with more noise.
Extreme readings usually signal greater volatility. At times like these, it’s better to reduce your position size rather than make a big bet.
#Q
Let’s use this data to break down RSI.
“Overbought” means prices have risen quickly and sharply recently. It doesn’t mean there are too many buyers, nor does it mean prices are about to fall.
Extreme readings on longer time frames generally carry more weight than those on shorter time frames. Readings on shorter time frames occur more frequently and come with more noise.
Extreme readings usually signal greater volatility. At times like these, it’s better to reduce your position size rather than make a big bet.
#Q