$ZEC ｜4-hour RSI(14) 24.6｜Oversold
Before looking at positions, first understand RSI.
When Wilder originally designed RSI, he used commodity prices. Now it comes built into almost every charting tool.
“Divergence” is a commonly discussed way to interpret RSI: when the price makes a new high but RSI doesn’t, it’s often seen as a sign that upward momentum is weakening. But divergence can persist through multiple occurrences.
The same reading can mean very different things in different market conditions, so don’t apply any single rule mechanically.
Before looking at positions, first understand RSI.
When Wilder originally designed RSI, he used commodity prices. Now it comes built into almost every charting tool.
“Divergence” is a commonly discussed way to interpret RSI: when the price makes a new high but RSI doesn’t, it’s often seen as a sign that upward momentum is weakening. But divergence can persist through multiple occurrences.
The same reading can mean very different things in different market conditions, so don’t apply any single rule mechanically.
