Just saw: $BTC 4-hour RSI 24.5, entering oversold territory.
People keep asking what RSI means, so here's my take.
“Overbought” means prices have risen too quickly and too sharply in the short term. It doesn’t mean there are too many buyers, nor does it mean prices are about to fall.
When RSI reaches an extreme zone, the safer response is to first think through the bigger trend, where the key price levels are, and whether your position can withstand a move in the opposite direction.
Indicators can fail, and stop-losses are essential: thinking ahead about what to do if you’re wrong matters more than whether your prediction is accurate.
#BTC
People keep asking what RSI means, so here's my take.
“Overbought” means prices have risen too quickly and too sharply in the short term. It doesn’t mean there are too many buyers, nor does it mean prices are about to fall.
When RSI reaches an extreme zone, the safer response is to first think through the bigger trend, where the key price levels are, and whether your position can withstand a move in the opposite direction.
Indicators can fail, and stop-losses are essential: thinking ahead about what to do if you’re wrong matters more than whether your prediction is accurate.
#BTC