Indicator Notes｜$EVAA ｜Daily RSI (14) 78.1｜Overbought
Definition: “Overbought” means prices have risen rapidly and substantially in recent days. It doesn’t mean there are too many buyers, nor does it mean a drop is imminent.
How to interpret it: When you see RSI enter an extreme zone, a more prudent approach is to first ask yourself: Which way is the broader trend heading? Where are the key price levels? Can this position withstand a move in the opposite direction?
The same data can mean very different things under different market conditions, so don’t blindly apply a single rule of thumb.
#EVAA
Definition: “Overbought” means prices have risen rapidly and substantially in recent days. It doesn’t mean there are too many buyers, nor does it mean a drop is imminent.
How to interpret it: When you see RSI enter an extreme zone, a more prudent approach is to first ask yourself: Which way is the broader trend heading? Where are the key price levels? Can this position withstand a move in the opposite direction?
The same data can mean very different things under different market conditions, so don’t blindly apply a single rule of thumb.
#EVAA