$JCT Daily RSI has surged to 76.1
Don't rush—understand RSI before taking action.
Mathematically, RS equals average gains ÷ average losses, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder's smoothing, not a simple arithmetic average.
RSI is calculated from historical prices and describes the strength of price movements that have already occurred; it can't tell you what will happen next.
Indicators can be wrong, so don't skip your stop-loss: deciding in advance what to do if you're wrong matters more than whether your prediction is accurate.
Just casual discussion; this is not advice.
Don't rush—understand RSI before taking action.
Mathematically, RS equals average gains ÷ average losses, and RSI = 100 − 100 ÷ (1 + RS). The averages use Wilder's smoothing, not a simple arithmetic average.
RSI is calculated from historical prices and describes the strength of price movements that have already occurred; it can't tell you what will happen next.
Indicators can be wrong, so don't skip your stop-loss: deciding in advance what to do if you're wrong matters more than whether your prediction is accurate.
Just casual discussion; this is not advice.