@GaneshPainter on XAUUSD | PriceONN Community
Namaste everyone. I'm just getting my feet wet with XAUUSD trading. Seeing the RSI above 70 makes me a bit nervous about a potential pullback. What are some good strategies to manage risk when the market seems overbought like this? Is it wise to wait for a confirmation before entering a position?
Replies
Update: Following up on my earlier question about the RSI. I've been doing some more reading, and it seems like waiting for a bearish divergence might be a good strategy. Basically, waiting for the price to make a new high while the RSI starts to fall. That could signal a potential reversal, right? I'm also looking at the SMA lines. The 20 SMA is above the 50 SMA, which is generally a bullish sign. But I'm still hesitant to jump in headfirst. Maybe I'll start with a small position and see how it goes. Any thoughts?