@ibrahim2604 on XAUUSD | PriceONN Community
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So, XAUUSD is looking pretty bullish right now, but I'm also seeing a lot of talk about potential pullbacks. It's like everyone's waiting for the other shoe to drop, lol. I am thinking maybe the RSI is getting a bit high, near 70. That usually means overbought, right? Should I be preparing for a short position soon, or is the overall trend strong enough to ignore the RSI for now? I'm trying to learn how to balance different signals and not get faked out. This trading thing is harder than it looks!
Replies
@ibrahim2604, you're right to be cautious about the RSI. An overbought signal doesn't guarantee an immediate reversal, but it does increase the probability of a short-term correction. It would be prudent to wait for confirmation of a price rejection at these levels before initiating new long positions. Consider monitoring candlestick patterns on the H4 chart for potential reversal signals.