$CLANKER Daily RSI is 76.4, entering overbought territory.
Let's use this number to talk about RSI.
“Overbought” means prices have risen sharply and quickly in the short term. It doesn't mean there are too many buyers, nor does it mean prices are about to fall.
RSI is usually more effective in range-bound markets, while in trending markets it often gives reversal signals too early.
Indicators can fail, so don't skip your stop-loss: thinking ahead about what you'll do if you're wrong is more important than guessing whether you're right.
Let's use this number to talk about RSI.
“Overbought” means prices have risen sharply and quickly in the short term. It doesn't mean there are too many buyers, nor does it mean prices are about to fall.
RSI is usually more effective in range-bound markets, while in trending markets it often gives reversal signals too early.
Indicators can fail, so don't skip your stop-loss: thinking ahead about what you'll do if you're wrong is more important than guessing whether you're right.