One of the biggest myths in trading is "RSI above 70 means it's time to sell"
If it were that easy, everyone would be profitable.
The truth?
RSI above 70 doesn't automatically mean the market is about to crash.
It simply means buying momentum is extremely strong.
🟢 What Does RSI Above 70 Mean?
When RSI moves above 70, buyers are aggressively pushing price higher.
Momentum is strong.
Demand is overwhelming supply.
That's why RSI often enters the overbought zone during powerful trends.
📊 Bitcoin Example
Think about some of Bitcoin's biggest rallies.
$BTC can move from $90K to $100K, then to $110K while RSI remains above 70 for days or even weeks.
Many beginners short the first RSI 70 reading…
Only to watch BTC continue climbing and liquidate their positions.
Why?
Because strong trends can stay overbought much longer than people expect.
Overbought doesn't mean "too expensive."
It often means "very strong."
⚠️ Common Beginner Mistakes
▫️ Selling immediately at RSI 70
▫️ Opening shorts without confirmation
▫️ Ignoring the overall trend
▫️ Fighting strong momentum
▫️ Assuming every overbought condition leads to a reversal
These mistakes usually come from trying to predict tops instead of reading momentum.
🏛️ How Professionals React
Experienced traders rarely panic when RSI moves above 70.
Instead, they ask:
▪️ Is volume increasing?
▪️ Is market structure still bullish?
▪️ Are higher highs and higher lows intact?
▪️ Is momentum accelerating or slowing down?
If the trend remains healthy, they often stay patient.
Some even use overbought conditions as confirmation that the trend is strong.
The warning signs usually appear later:
🔴 Bearish divergence
🔴 Weak volume
🔴 Failed breakouts
🔴 Loss of key support levels
📌 RSI above 70 should make you pay attention…
Not automatically press the sell button.
Strong trends create overbought conditions.
And the market often rewards traders who respect momentum instead of fighting it.
Trade the evidence.
Not the number on the indicator.
#SummerCreationCamp 
