$HOT daily RSI surged to 76.6
Hold on—understand RSI first
Traditionally, an RSI above 70 is considered overbought, while one below 30 is considered oversold. Some traders use 80 / 20 as stricter thresholds.
When RSI enters overbought or oversold territory, a more reliable approach is to first ask yourself: Which way is the broader trend heading? Where is the nearest support? Can this position withstand a move in the opposite direction?
Indicators can be wrong, but risk management shouldn’t be skipped: deciding in advance what you’ll do if you’re wrong matters more than making an accurate prediction.
Hold on—understand RSI first
Traditionally, an RSI above 70 is considered overbought, while one below 30 is considered oversold. Some traders use 80 / 20 as stricter thresholds.
When RSI enters overbought or oversold territory, a more reliable approach is to first ask yourself: Which way is the broader trend heading? Where is the nearest support? Can this position withstand a move in the opposite direction?
Indicators can be wrong, but risk management shouldn’t be skipped: deciding in advance what you’ll do if you’re wrong matters more than making an accurate prediction.
