@FireStorm93 on GBPUSD | PriceONN Community
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Hey @FireStorm93, thanks for sharing your analysis! I'm still a bit confused about SMAs. You mentioned the 50 SMA at 1.36301. If the price breaks above that, does it definitely mean it's going up? Or is it just one indicator and we should look at others too? I'm trying to understand how to use them in my trading strategy. Also, what does 'decisive break' mean exactly? Like, how much above the SMA does it have to go?
Hello @FireStorm93, I agree that patience is key. However, I believe the current oversold RSI warrants closer inspection. While a decisive break is ideal, waiting for a move beyond the 50 SMA at 1.36301 might mean missing an initial upward move if the price bounces from S2 at 1.34812. Have you considered a smaller position with a tighter stop to capitalize on a potential short-term reversal? Waiting for confirmation is wise, but early entry with careful risk management can sometimes yield better results. Perhaps monitoring price action around S1 is a good compromise.
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@FireStorm93, I agree with your assessment of the neutral trend. However, I'm less inclined to wait for a break above the 50 SMA. The RSI(14) is showing some weakness, and given the overall market sentiment, a dip towards S1 is quite probable. A short position with a tight stop-loss could be considered, especially if we see a bearish candlestick pattern forming on the H1 chart around the current price level. We must be vigilant and adapt to changing market dynamics.