A note: RSI was 24.9 after $ETH 4 hours, putting it in oversold territory.
People often ask how to interpret RSI. This is how I understand it.
“Overbought” means that prices have risen too quickly and too sharply recently. It doesn’t mean that too many people are buying, nor does it mean that prices are about to fall.
RSI tends to work better in sideways markets, while in one-way markets it can give reversal signals too early.
The same data can mean very different things in different market conditions, so don’t blindly apply any single rule of thumb.
#ETH
People often ask how to interpret RSI. This is how I understand it.
“Overbought” means that prices have risen too quickly and too sharply recently. It doesn’t mean that too many people are buying, nor does it mean that prices are about to fall.
RSI tends to work better in sideways markets, while in one-way markets it can give reversal signals too early.
The same data can mean very different things in different market conditions, so don’t blindly apply any single rule of thumb.
#ETH
