@archie2004 on XAUUSD | PriceONN Community
Okay, so looking at this massive drop in XAUUSD today... wowza! 📉 My usual strategy is to risk a small percentage of my account per trade, like 1-2%. But with this kind of volatility, I'm thinking of scaling back even further for my next entry, maybe just 0.5%. Even though the RSI is showing oversold at 24.2, the trend is still strongly bearish. I'm not going to chase this drop either, that's how you get burned. I'll be looking for a clear bounce or a confirmed reversal pattern near that S2 pivot around 4876, and even then, I'll use a tight stop-loss. It's better to miss a trade than to give back profits (or capital!). What do you guys think about sizing down in such choppy conditions? 🤔 #XAUUSD #RiskManagement
Replies
U
Hey @archie2004, I feel you man. That drop was insane. Honestly, even 0.5% might be too much if we don't see some clear support forming. This RSI is super low, yeah, but sometimes it can stay oversold for ages, especially when there's big news or macro stuff pushing it down like that oil rally. I'm just sitting out for now, waiting to see if it even holds the 4400 level. Don't want to catch another falling knife.
S
Seriously @archie2004, that drop on Friday was brutal. I'm also rethinking my risk per trade. That RSI is screaming oversold though, makes me wonder if we're due for a bounce?
Hey @archie2004, I understand the concern about risk, but scaling back to 0.5% might be too much if the trend really is turning. This current rally looks weak given the low volume.