$AIOT -hour RSI is 76.6, in overbought territory.
When I was first learning technical analysis, I saw the RSI go above 70 and wanted to sell. It took me a while to understand: an RSI above 70 is called overbought. It simply means that recent gains make up a large share of the price movement. In a one-way market, it can stay elevated for a long time; an overbought reading alone is not a reason to exit.
“Divergence” is a commonly mentioned use of the RSI: when the price makes a new high but the RSI doesn’t, it’s often seen as a sign that upward momentum is weakening. But divergence can also persist for a long time.
Indicators can be wrong, so don’t skip your stop-loss: decide in advance what you’ll do if your judgment is wrong—it’s more important than guessing correctly.
#AIOT
Stay rational; don’t get carried away.
When I was first learning technical analysis, I saw the RSI go above 70 and wanted to sell. It took me a while to understand: an RSI above 70 is called overbought. It simply means that recent gains make up a large share of the price movement. In a one-way market, it can stay elevated for a long time; an overbought reading alone is not a reason to exit.
“Divergence” is a commonly mentioned use of the RSI: when the price makes a new high but the RSI doesn’t, it’s often seen as a sign that upward momentum is weakening. But divergence can also persist for a long time.
Indicators can be wrong, so don’t skip your stop-loss: decide in advance what you’ll do if your judgment is wrong—it’s more important than guessing correctly.
#AIOT
Stay rational; don’t get carried away.