RSI Above 70 Isn't a Top: 4 Lessons From One NAS100 ChartMost traders learn RSI as one rule: above 70 is overbought, below 30 is oversold.
On this NAS100 4h chart, RSI crossed above a fixed 70 line five times between early August and early October. After four of those five, price still went on to make a higher high. The problem is not RSI. It is reading RSI without the trend around it.
This post walks through one real chart and four lessons. The numbers drawn on the chart match the numbers below, so you can follow along bar by bar.
Level: beginne
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