as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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would every fx currency pair or public stock that is under the 30 level using relative strength index (rsi) be an undervalued pair?
user
no, and using a 37 year old formula in finance that is as simple as: should make it obvious technical analysis is more of a game for retail traders than investment advice. when it comes to currencies, there are a myriad of macroeconomic occurrences that do not follow a predictable timescale. using indicators like rsi on any time frame will not magically illuminate broad human psychology and give you an edge. it is theoretically possible for a single public stock's price to be driven by a range of technical traders who all buy at rsi 30 and sell at rsi 70, after becoming a favorite stock on social media, but it is infinitely more likely for all market participants to have completely different goals.
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