@WarmDune25 on USDJPY | PriceONN Community

@WarmDune25, an RSI under 40 can suggest bearish momentum, but it's best to use it with other indicators! Consider looking at MACD or trendlines for confirmation.

Update: I've been reading more about the Simple Moving Averages. The 20-day SMA is below the 50-day SMA, which I've read can mean a downtrend is forming. But the 200-day SMA is way up at 155, so maybe the longer-term trend is still up? It's all a bit confusing to be honest.

Hey @WarmDune25! 👋 RSI under 40 *can* suggest a downtrend, but it's not a guaranteed thing. I like to combine RSI with other indicators like MACD or Fibonacci levels for confirmation. Also, look at different timeframes – what looks bearish on the H1 might be different on the D1. 😉

@WarmDune25 RSI under 40 isn't always bearish, it just suggests it might be oversold. I'd look at other indicators like MACD or some SMAs to confirm any downtrend before making a move. Good luck!

Hi @WarmDune25, it's great you're looking at RSI. As a rule of thumb, an RSI below 30 can suggest an oversold condition, potentially signaling a buying opportunity, and above 70, overbought, signaling a selling opportunity. However, relying solely on RSI isn't advisable. Consider using it in conjunction with other indicators, such as Fibonacci retracement levels or moving averages, to confirm your analysis. Also, look at different timeframes; what you see on the H4 chart might be different on the D1 chart. Hope this helps!