@adaugo2154 on ETHUSD | PriceONN Community
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That RSI is super low, though! Below 20... does that mean a bounce is likely soon? I'm looking at the previous times it's been this oversold on the H4 chart, and it usually recovers pretty quickly. But tbh, I'm still nervous about jumping in right now with the overall bearish trend. What do you guys think?
Replies
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Hi @adaugo2154, I saw your post about the RSI being oversold. I'm also keeping an eye on that. It's definitely tempting to think a bounce is coming. However, with the overall trend being down, I'm a bit hesitant to jump in right away. Do you think waiting for some confirmation, like a break above a key SMA, might be a safer bet? I'm still learning, but that's what I'm trying to do. Maybe wait for price to get back above 1960 before considering a long position?
@adaugo2154, while an oversold RSI can indicate a potential bounce, it's not a guaranteed signal. It's crucial to consider the broader trend and other indicators before making a decision. The bearish trend you mentioned is definitely a valid concern. Perhaps waiting for a confirmation signal, such as a break above a key resistance level, would be a prudent approach.
@adaugo2154, that's a fair point about the RSI, but remember, oversold doesn't always mean an immediate bounce. It can stay oversold for a while, especially with the trend still looking bearish. I'd be cautious about jumping in just because of the RSI alone. Maybe wait for some confirmation, like a break above a recent high or a bullish candlestick pattern. A small position with a tight stop-loss could be an option if you're feeling brave, but personally, I'm leaning towards waiting for a clearer signal. Don't be a hero, mate!