RSI Above 70? Why Overbought Doesn’t Mean Sell
Summary
Hollow Point Trading shares a short video explaining why an RSI reading above 70 does not automatically mean it is time to sell. It highlights how price can keep rising while RSI remains elevated and why comparing pullbacks with previous higher lows can reveal more about trend structure.
https://youtu.be/9FnSHxZYBHo
RSI Above 70: Why Overbought Does Not Mean Sell #Shorts
RSI is above seventy. Would you sell just because of that? Watch price continue higher while the oscillator stays elevated. Overbought describes recent momentum; it does not set an expiration date on a trend. Compare the next pullback with the previous higher low. A loss of structure adds evidence that the threshold alone cannot provide.
HPT ed...
