$IDOL Daily RSI is at 75, entering overbought territory.
RSI itself doesn’t drive prices, but many people watch it, so its reading can influence the decisions of quite a few traders.
The formula is: RS = average gain ÷ average loss, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder’s smoothing, not a simple arithmetic mean.
Oversold simply means prices have fallen quickly and sharply over this period. They may rebound afterward, or they may churn near the lows for a long time before choosing a direction.
Comparing multiple indicators is more reliable than looking at just one, but even more signals can’t provide a definitive answer.
#IDOL
RSI itself doesn’t drive prices, but many people watch it, so its reading can influence the decisions of quite a few traders.
The formula is: RS = average gain ÷ average loss, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder’s smoothing, not a simple arithmetic mean.
Oversold simply means prices have fallen quickly and sharply over this period. They may rebound afterward, or they may churn near the lows for a long time before choosing a direction.
Comparing multiple indicators is more reliable than looking at just one, but even more signals can’t provide a definitive answer.
#IDOL