When RSI stays overbought and price keeps climbing
In class we still meet traders who fade every trip of RSI above 70. On a quiet mean-reverting name that habit can look clever for a week. On a KOSPI leader in a persistent advance, the same habit buys you a string of covered shorts against the higher-timeframe momentum.
What the line is telling you
RSI measures the balance of up closes versus down closes inside its lookback. A sustained reading in the high zone often means buyers are still dominating that window — not that a reverse is owed to you. Momentum interpretation starts by asking which timeframe owns the trade before you borrow a counter-trend idea from a lower chart.
A note you can reuse
Before fading an elevated RSI, write: trend direction on the daily, location of the last momentum failure, and whether divergence is present on the timeframe you actually trade. If those three lines do not support a fade, stay flat or trade with the advance using a different rule set.
Classroom drills on this point take an evening. The intensive returns to it in unit two because the myth is sticky.