Chart Notes｜$BMT ｜Daily RSI(14) 80.1｜Overbought
First, the definition: In formula terms, RS equals the average gain divided by the average loss, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder smoothing, not a simple arithmetic mean.
A common interpretation: During a strong uptrend, RSI can stay above 70 for quite a while; in a one-way decline, it can also remain below 30 for a long time. Overbought or oversold does not mean an immediate reversal.
The point of understanding this indicator is to avoid being misled by a single number, not to use it to predict tops or bottoms.
First, the definition: In formula terms, RS equals the average gain divided by the average loss, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder smoothing, not a simple arithmetic mean.
A common interpretation: During a strong uptrend, RSI can stay above 70 for quite a while; in a one-way decline, it can also remain below 30 for a long time. Overbought or oversold does not mean an immediate reversal.
The point of understanding this indicator is to avoid being misled by a single number, not to use it to predict tops or bottoms.