Tag Archives: RSI
The headline yesterday in a respectable mainstream financial media website was about stocks not having been so overbought in 22 years. Is this a correct assessment or a journalist’s way of saying that stock market momentum is highest in 22 … Continue reading
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
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”.