A quick note: $ETH 4-hour RSI is 24.7, entering oversold territory, with the current price at 1955.21.
People often ask what RSI means. This is how I understand it.
RSI 50 is often seen as the dividing line between bulls and bears: staying above 50 suggests upward momentum is prevailing, while staying below it suggests the opposite.
The indicator tends to work better in range-bound markets, but in trending markets it can signal a reversal too early.
Indicators can fail, so stop-losses still matter: thinking in advance about what to do if you're wrong is more important than trying to guess correctly.
People often ask what RSI means. This is how I understand it.
RSI 50 is often seen as the dividing line between bulls and bears: staying above 50 suggests upward momentum is prevailing, while staying below it suggests the opposite.
The indicator tends to work better in range-bound markets, but in trending markets it can signal a reversal too early.
Indicators can fail, so stop-losses still matter: thinking in advance about what to do if you're wrong is more important than trying to guess correctly.
