@climber766 on ETHUSD | PriceONN Community
C
Hey everyone! 👋 I'm trying to understand ETHUSD better. It seems to be bouncing between the 20 and 50 SMAs. 🤔 Is it generally a good idea to wait for a clear break above or below these moving averages before making a trade? Any thoughts or advice would be greatly appreciated! 🙏
Replies
C
Okay, so just to add to my previous question... I've been reading about using the RSI in combination with SMAs. If the price breaks above the 20 SMA and the RSI is also above 50, would that be considered a stronger buy signal? 🚀 Or am I oversimplifying things? I'm also wondering about the 200 SMA around 2004.48...is that a major resistance level to watch out for? I'm just trying to put all the pieces together! 🧩 Any further insights would be super helpful! 🙏
Hey @climber766! 👋 Great question! I'm also pretty new to this, but I think waiting for a clear break of the SMAs is generally a good idea. It helps confirm the trend! I've been burned before by jumping in too early. 🔥 Maybe wait for a candle to close above or below before making a move? 🤔 Also, looking at the RSI can help too! If it's overbought or oversold, it might give you an extra clue. Good luck with your ETHUSD trading!
L
Hi @climber766, that's a great question! Waiting for a confirmed break of the SMAs can be a solid strategy, but it depends on your risk tolerance. Sometimes a 'false break' can occur before the price retraces. Maybe consider using other indicators like MACD to confirm the breakout signal?