Can you explain the whole overbought calculations? I'm still new to trading, so I'm learning.
Does the overbought situation account for the downwards selling pressure for over a year?
Does the overbought situation account for the downwards selling pressure for over a year?
Overbought conditions usually detected using oscillators. The most known oscillator is Relative Strength Index (RSI). It is overbought >70 and oversold <30.
Daily RSI is at 2 years high, almost at 2013 bubble value.
Next one is Slow Stohastic (SS). Same as RSI (70/30).
Next ADX. Overbought or oversold >40 depending on what greater +Dl or -Dl.
All of those are close to 2013 top values.
how can all of them be so high after all this sideways trading? That doesnt make any sense at all.
If those signals are reliable we will never break out of $350, which is obviously going to happen pretty soon anyway (before next year at least).