Extreme Overbought coins Due for a Pullback
altcoins tend to be very volatile with big swings up and down. How do we know when altcoins’ prices get overextended? Due for a pullback?
One way to gauge if we’re reaching overbought conditions, due for a brief pullback, would be to find altcoins with RSI above 80. Those are extreme overbought levels that typically don’t last long.
Hence, a brief pullback could be awaiting in the near future, presenting a potential buying opportunity.
RSI over 70 is overbought but that is typically not alarming, however, over 80 or even 85 is extreme. That’s especially concerning if prices are near resistance areas.
Watch this 2 min tutorial video (below) on how to scan for altcoins that are extremely overbought currently, but are in an Uptrend on Short- and Medium-Term basis.
You can save this filter for future reuse and even create an alert to get notified of such situations. Add this to your signal toolbox! Learn to create your own screens and alerts.