Indicator note | $ICNT | Daily RSI(14) 76.8 | Overbought
First, a definition: “Overbought” means that prices have risen too quickly and too sharply in the short term. It doesn’t mean that too many people are buying, nor does it mean prices are about to fall.
A common way to read it: Many people pay more attention to when the RSI exits the overbought or oversold zone—for example, when it falls from above 70 to below 70—rather than taking the opposite position as soon as it enters the zone.
All indicators only summarize market movements that have already happened. The market can move in the opposite direction at any time.
#ICNT
First, a definition: “Overbought” means that prices have risen too quickly and too sharply in the short term. It doesn’t mean that too many people are buying, nor does it mean prices are about to fall.
A common way to read it: Many people pay more attention to when the RSI exits the overbought or oversold zone—for example, when it falls from above 70 to below 70—rather than taking the opposite position as soon as it enters the zone.
All indicators only summarize market movements that have already happened. The market can move in the opposite direction at any time.
#ICNT