Market Sentiment Guide

Market sentiment describes the general directional pressure suggested by a collection of market conditions. It does not guarantee that a market will move in a particular direction.

Incoming Bullishness: Bird's Eye Tool displays this classification when its 15-minute RSI reading falls below 30. Traditionally, an RSI below 30 is considered an oversold condition. Oversold conditions can sometimes precede a rebound, but they can also remain oversold while a market continues lower.

Neutral: A reading between 30 and 70 is classified as Neutral by Bird's Eye Tool. This means the RSI is not currently reaching either of the platform's defined extreme thresholds.

Incoming Bearishness: Bird's Eye Tool displays this classification when its 15-minute RSI reading rises above 70. Traditionally, an RSI above 70 is considered an overbought condition. Overbought conditions can sometimes precede a decline, but they can also remain elevated while a market continues higher.

RSI should never be interpreted in isolation. Strong trends can keep an RSI elevated or depressed for extended periods. Traders should use additional analysis and appropriate risk management before making financial decisions.