$SHELL | Why the Same RSI Can Show Two Different Numbers
Here's something that confuses a lot of newcomers: SHELL's RSI(6) reads 40.16 on the daily chart, but 64.07 on the 1-hour chart. Same asset, same indicator, very different numbers. Is the data wrong? No.
RSI isn't one single number for an asset. It's calculated separately for each chart interval you pick, using the candles from that interval. The daily RSI looks at the last 6 daily candles; the 1-hour RSI looks at the last 6 hourly candles. They're answering two different questions: how has SHELL moved over the last 6 days, versus the last 6 hours.
That's why checking just one timeframe and treating it as "the" RSI of an asset misses part of the picture.
#SHELL #CryptoEducation #Timeframes
Here's something that confuses a lot of newcomers: SHELL's RSI(6) reads 40.16 on the daily chart, but 64.07 on the 1-hour chart. Same asset, same indicator, very different numbers. Is the data wrong? No.
RSI isn't one single number for an asset. It's calculated separately for each chart interval you pick, using the candles from that interval. The daily RSI looks at the last 6 daily candles; the 1-hour RSI looks at the last 6 hourly candles. They're answering two different questions: how has SHELL moved over the last 6 days, versus the last 6 hours.
That's why checking just one timeframe and treating it as "the" RSI of an asset misses part of the picture.
#SHELL #CryptoEducation #Timeframes