Technical Note | $EVAA | 4-hour RSI(14) 81.1 | Overbought
First, the definition: In traditional usage, an RSI above 70 is considered overbought, while one below 30 is considered oversold. Some traders use 80 / 20 as more extreme thresholds.
Next, how to interpret it: RSI norms vary across different coins. Smaller coins with greater volatility are also more likely to hit extreme values, so be cautious about applying the same thresholds across the board.
With leveraged positions, first consider whether you can withstand the worst-case scenario, then look at what the indicator says.
First, the definition: In traditional usage, an RSI above 70 is considered overbought, while one below 30 is considered oversold. Some traders use 80 / 20 as more extreme thresholds.
Next, how to interpret it: RSI norms vary across different coins. Smaller coins with greater volatility are also more likely to hit extreme values, so be cautious about applying the same thresholds across the board.
With leveraged positions, first consider whether you can withstand the worst-case scenario, then look at what the indicator says.
