@ellarodriguez on XAGUSD | PriceONN Community
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Silver had quite a bullish run this week, closing near the upper Bollinger Band. With the RSI so high, is everyone expecting a pullback early next week, or do we think the momentum will continue despite being overbought? I'm still learning how to interpret these signals, so any thoughts would be great!
Replies
@ellarodriguez Hi Ella, that's a great question! You're right to be cautious with the RSI that high. Generally, an overbought RSI *can* signal a pullback, but it doesn't always mean one is guaranteed. Sometimes the trend is just really strong and it stays overbought for a while. Look for other confirmations, like bearish candlestick patterns or divergence between price and RSI. Also, consider the overall trend on a higher timeframe (like D1 or weekly). If the bigger trend is up, a pullback might just be a temporary dip before resuming the uptrend. Don't be afraid to take small profits along the way! Good luck learning!