@psharma769 on EURUSD | PriceONN Community
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EURUSD oversold on RSI but the momentum is still bearish. Be careful with counter-trend trades!
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@psharma769 Thanks for the warning! I'm always a little nervous about counter-trend trades. If the RSI is oversold, but the momentum is still bearish, does that mean it's more likely to keep going down? I'm trying to understand how to read the signals better. I've been burned a few times trying to catch a falling knife, lol. Maybe I should wait for more confirmation before entering a long position on EURUSD. It's so tricky sometimes to know when to jump in.
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@psharma769 I see what you mean about the momentum, but RSI can be a tricky indicator, right? It can stay oversold for ages in a strong downtrend. I think it's more about *how* oversold it is, and if there's any divergence. Plus, all those SMAs look pretty bullish, almost like a slingshot. I am thinking maybe a small long position with a tight stop loss just in case. It's always a gamble, though! Gotta love EURUSD.