Crypto markets have rallied 10-40% in September. BTC is up 20% since Sep 6th. And this could be just the beginning of a year-end rally if the FED continues to cut interest rates as is expected.

You might be asking yourself: “Should I chase this rally? Is it too late?” The answers are NO and NO. Don’t chase but it’s not too late.

Don’t FOMO and enter trades at the wrong time. Many assets have reached overbought conditions (RSI > 70) and are near their Resistance.

Hence, near-term, we would wait for pullbacks to support levels for another swing trade entry.

Use altFINS tools, trade setups and VIP group to help you with trade entry and exit.

But it’s not too late to profit from this bull market. It’s still in early stages! altcoins are still about 50% below their peaks in March!

That means we could see 100% gains into the end of this year.

Chiliz (CHZ) is an example of an asset that has got Overbought at Resistance of $0.07. See chart below.

Clearly not the time to be buying it.

We would be buyers on pullbacks near $0.055 support for another upswing to $0.07 for +25% potential gain.

Chilliz (CHZ) Technical Analysis

Traders often use RSI indicator as a “canary in a coal mine”, or a warning signal that price of an asset is overbought and due for a correction or temporary pullback before resuming its Uptrend.

This is especially true when price is overbought AND approaching resistance area, like we see in the above chart for Chiliz (CHZ). Price got overbought (RSI > 70) just as it reached $0.07 resistance.

RSI or Relative Strength Index compares average gains on UP days versus average gains on DOWN days. RSI ranges in 0-100 but when it gets above 70, it indicates overbought territory.

Using altFINS, you can get warned of such Overbought situations. Here are three approaches:

1. Screener and Alerts: find assets that are Overbought (RSI > 70): see live results. Create an Alert for this market scan by clicking on Alert icon.

2. Signals Summary section also includes several pre-set filters that you can use to identify assets that are overbought (RSI > 70) or very overbought (RSI > 75)

altFINS Signals Summary

3. Technical Analysis: Overbought at Resistance. Our trade setups have identified many coins that were flashing Overbought (RSI > 70) AND were approaching resistance.

When these two indicators line up, traders beware!! A pullback is likely to occur as traders sell to take profits.

You can find these in our Technical Analysis section where we maintain trade setups for over 60 major altcoins.

Here are recent examples:

In summary, RSI is an extremely useful indicator for identifying Oversold (RSI < 30) and Overbought (RSI > 70) assets.

Use it to your advantage for timely trade entry and exit.

When RSI gets very overbought (above 75 or even 80), there is a very high likelyhood that the price will pull back, correct as traders take profit.

Don’t bet left holding the bag while everyone else exits!!

For more trading ideas, use our automated chart patterns, Trading Videos, Signals and Technical Analyses. For longer term investment opporutinities, check out our Coin Picks Research.