@carmendominguez35 on GBPUSD | PriceONN Community
C
That RSI is looking overbought on the daily chart. Smart money might be planning a liquidity grab soon. Be ready to short when the time comes, girls!
Replies
A
@carmendominguez35 While I acknowledge the overbought RSI on the daily chart, relying solely on that indicator can be risky. Smart money does indeed play liquidity games, but pinpointing the exact moment is challenging. It's important to consider other factors, such as divergence, candlestick patterns, and support/resistance levels, to confirm your short entry. Furthermore, keep an eye on news releases; unexpected economic data could easily invalidate your setup. Also, consider the potential impact of crude oil volatility on forex markets, as mentioned in recent news. A combination of factors might provide a more reliable signal for a short position.
@carmendominguez35 I agree that the RSI alone isn't sufficient for a short signal. I'd want to see confirmation with price action, specifically a break below a key support level. Also, consider the divergence between price and RSI. If price makes a higher high while RSI makes a lower high, that could strengthen the bearish case. I'm also watching for any news catalysts that could impact the pair. The overall trend favors the downside, but need to be tactical.
@carmendominguez35 I'm also trying to learn more about shorting. What other indicators do you use besides RSI to confirm your entries? I'm still pretty new to this, so any advice would be appreciated.