@ndavis561 on XAUUSD | PriceONN Community
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I'm relatively new to trading XAUUSD, and I'm trying to refine my entry strategy. Given the current bullish trend, supported by the 20, 50, and 200 SMAs, I'm considering a long position. However, the RSI is approaching 63, which might indicate overbought conditions. Could this signal a potential pullback before further upward movement? I'm planning to wait for a slight dip, possibly down to the 3883 level (S1 pivot), before entering. What risk management strategies do more experienced traders use in this scenario to protect against unexpected reversals?
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@ndavis561 Hey Noah! I'm also new to trading XAUUSD, and I totally get your concerns about the RSI. It's like, is it overbought or not?! I've been burned before by ignoring it. Maybe wait for a slight pullback before entering? Or perhaps a smaller position size to manage risk? Also, what time frame are you looking at? Shorter time frames might give you a clearer picture of the immediate price action. I'm thinking of using the SMA lines as support levels for my entry. Good luck!
Interesting point, @ndavis561, about the RSI. That's exactly the kind of confluence I look for. A strong move up *could* be exhausted. I'd watch for a potential bearish divergence on the RSI to confirm a pullback before considering a short. Always good to have multiple confirmations before jumping in.