$ONE Daily RSI is 75.1, in overbought territory.
RSI itself does not determine price, but plenty of people watch it, and its reading can influence many people’s decisions.
“Overbought” means prices have risen quickly and sharply in the short term; it does not mean too many people are buying, nor does it mean a drop is imminent.
When RSI reaches an extreme level, a more reliable approach is to first ask yourself: What is the overall trend? Where are the key price levels? Can this position withstand a move in the opposite direction?
Indicators can be wrong, so don’t skip the stop-loss: deciding in advance what to do if you’re wrong matters more than predicting correctly.
#ONE
RSI itself does not determine price, but plenty of people watch it, and its reading can influence many people’s decisions.
“Overbought” means prices have risen quickly and sharply in the short term; it does not mean too many people are buying, nor does it mean a drop is imminent.
When RSI reaches an extreme level, a more reliable approach is to first ask yourself: What is the overall trend? Where are the key price levels? Can this position withstand a move in the opposite direction?
Indicators can be wrong, so don’t skip the stop-loss: deciding in advance what to do if you’re wrong matters more than predicting correctly.
#ONE
