The massive crash of gold and silver was inevitable — the monthly RSI was indicating an “anomaly.”

Gold and silver.

On a monthly chart, RSI was over 90, a level I honestly have never seen in my trading career.

RSI is the representative oscillator that measures “overbought/oversold,” but

being over 90 on the monthly chart is not a short-term overheating.

It means a state where funds have been biased in one direction for months to years.

Of course,

- Fundamentals are strong

- Inflation concerns

- Demand for safe assets

These “plausible reasons” can be found after the fact as much as you like.

But the one fact the chart showed was just one thing.

There were almost no new buyers left to come in.

As expected, what followed was not a mere pullback but an enormous correction.

What matters here is

✔ It declined

rather than

✔ That the decline was something you could have known beforehand.

Technical analysis is not magic that predicts the future.

However

it is an honest indicator that tells you how abnormal the current state is.

For those who thought it would keep rising,

it was quite a good lesson, wasn’t it?

What is truly dangerous in the market is

- the decline

Rather than

- clinging to the belief that it won’t go down

Whether you understood this difference will determine if you survive the next market.