Hey, I just stumbled upon a great article.
Let’s Learn TA - RSI is not an Overbought Oversold Indicator
He explains in the article that it really isn’t an Overbought/Oversold Indicator.
And then there’s a second article he links you further to that explain what it really is; A momentum oscillator.
A quick quote from the article:
The problem with the human mind is that the first time we hear about something, the first time we read about something, to our mind this is the truth about that something. Any subsequent thing they hear or read about it we would discard them as false. This is a mental problem. You may disagree but to me anything that has the source of the problem traced to the mind, to me this is a mental problem.
Oh and the source the author of that article used is the book from the creator of the RSI.
