You should not buy when RSI is above 70, agree?Now, let's use this stock , 388 as an example. From 2021 to Sept 2024, it has been on a downtrend for 3 over years.........
If we rely solely on the RSI indicators which states that sell when it is over 70 or buy when it is 30 or below then , one would be in deep trouble. The simple trend line is more meaningful and accurate as one can see from the chart.
Whenever price hit the resistance level, it continues to falter albeit at a slower pace (death of a thousand cuts). Now, we are in the same situation where the RSI is way above 70 (91) which technically is a screaming SELL.
Don't mess with the bull run coz it can be fast and furious like this recent rally. It has not taken a breather , yet and I think more stimulus will continue to be rolled out to entice the people and businesses to spend more money.
Just think about it, those smart people who invented or sell you the indicators promising to make you lots of money, why don't they hide in their garage and make the millions quietly instead of selling you over the internet ? If I ever found a method that guarantee money making, I would not announce to the world until I am a multi millionaire ,hahahaha
