I am following an active entry on $BR , and this operation is allowing me to test an idea that constantly comes up in trading: when an asset reaches an oversold zone, many start looking for a possible rebound.
But I want to challenge that interpretation.
At this moment BRUSDT is trading near 0.18314 USDT, after a 17.95% drop in 24 hours, with a recent low of 0.18252. The RSI(6) is showing around 20.57, while the price remains below the Bollinger average (0.19473) and the Supertrend stays well above it, at 0.20180.
This is where my theory comes from: oversold can describe the intensity of selling pressure, but it doesn’t necessarily predict its end.
That’s why I don’t want to conclude that BRUSDT must bounce just because the RSI is low. I want to observe what the price does after this condition and compare it with my historical results.
This entry is still open, and for now, the market remains the experiment.
Is oversold truly a reversal signal, or just a snapshot of what already happened?
#ShareMyTradFi #Bedrock #Trading #Nomadacripto #BR $BR
But I want to challenge that interpretation.
At this moment BRUSDT is trading near 0.18314 USDT, after a 17.95% drop in 24 hours, with a recent low of 0.18252. The RSI(6) is showing around 20.57, while the price remains below the Bollinger average (0.19473) and the Supertrend stays well above it, at 0.20180.
This is where my theory comes from: oversold can describe the intensity of selling pressure, but it doesn’t necessarily predict its end.
That’s why I don’t want to conclude that BRUSDT must bounce just because the RSI is low. I want to observe what the price does after this condition and compare it with my historical results.
This entry is still open, and for now, the market remains the experiment.
Is oversold truly a reversal signal, or just a snapshot of what already happened?
#ShareMyTradFi #Bedrock #Trading #Nomadacripto #BR $BR