$DODOX Daily RSI is 81, entering overbought territory.
When I was just learning technical analysis, I’d see the RSI go above 70 and want to sell. It took me a while to understand: overbought just means prices have risen quickly and sharply in the short term. During a one-way rally, the RSI can stay above 70 for a long time; it doesn’t mean prices are about to fall immediately.
Oversold just means prices have fallen too quickly and too sharply over this period. They might rebound afterward, or they might move sideways near the lows for a while before choosing a direction.
Understanding an indicator is about being less intimidated by the numbers, not using it to predict whether prices will rise or fall.
#DODOX
When I was just learning technical analysis, I’d see the RSI go above 70 and want to sell. It took me a while to understand: overbought just means prices have risen quickly and sharply in the short term. During a one-way rally, the RSI can stay above 70 for a long time; it doesn’t mean prices are about to fall immediately.
Oversold just means prices have fallen too quickly and too sharply over this period. They might rebound afterward, or they might move sideways near the lows for a while before choosing a direction.
Understanding an indicator is about being less intimidated by the numbers, not using it to predict whether prices will rise or fall.
#DODOX
