Tag Archives: RSI

Overbought Stock Market Conditions Are Not as Persistent as in Past

After reading recent articles in financial and social media, one may get the impression that prolonged overbought conditions in the stock market are a recent phenomenon, usually attributed to central bank manipulation and herd behavior. These are false impressions according to … Continue reading

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A Reminder and Example About the Short-term Nature of RSI

I thought this is a good example because it illustrates how the RSI (Relative Strength Index) is a very short-term indicator and, in addition, reminds of the rule that “the market can stay overbought or oversold for longer than you can stay solvent”.

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