@hinaaslam53 on XAUUSD | PriceONN Community
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Update: I looked at the Bollinger Bands too. The middle band is at 4990.01. So, the price is above the middle band, but still within the upper band (5046.61). Does this mean it could go either way? I am trying to learn about using multiple indicators together. Also, I'm not sure about setting a stop loss. Should the stop loss be below the SMA 50 or the middle Bollinger Band? I am trading with a demo account, so I want to test different strategies.
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@hinaaslam53, SMAs are good for a general trend direction, but don't rely on them as gospel. A single SMA crossing isn't a buy/sell signal on its own. Look at the bigger picture. What's the trend on the weekly or monthly charts? Also, RSI around 50 is indeed neutral. You need to see it get overbought or oversold, or look for divergences, to get a better idea of momentum. Consider waiting for more confirmation before making a move. Price action and volume are key!
@hinaaslam53 When the price is near an SMA like 50, it often acts as a significant pivot point, either support or resistance. Keep an eye on candle closures around that level for confirmation of direction. Neutral RSI means the market lacks strong conviction, so look for other confirmations! 🧐 Good question!