G'Day slick, Thanks for the tag and question.
100% correct RSI now at 18.8 and is in my buy zone. If you don't mind, I shall explain a bit for all, and answer yours.
RSI as we all know is typically 'oversold' at 30, overbought at 70. However, this leaves 30% margin at either side. I personally do not call this as a safe range to buy or sell as there is still a large margin to gain or loss. I typically wait for 20 or 80 as it is more accurate as to when a stock is oversold/bought. IMU is now in my 'buy' zone range. This indicates to me that is a watch and act time, but looking for
other indicators. Mentioned previously, I look for 3 of my chart indicators to tell me it is now a 'buy', if I get 4, even better. So IMU is now approaching a buy but I have not pulled the trigger (added).
As for slick, he is watching a few stock charts and in front of the computer 7hours a day. This is commitment, and show both his passion and treats it as a major income stream (don't know as fact, just saying). So this has also raised his eyebrows, but can tap dance faster than all of us (buy/sell).
So, RSI tipped below today, I am now lookoing for other indicators. Unfortunately the candle is below the BB, the angle of attack of the BB, 8ema AND MACD is just horrible. Volume has increased, but RED. So tread continues. Yuk!!
So whilst RSI is in the buy zone there a 4 other indicators still saying don't buy.....just yet, but be ready. Also friday tomorrow.....
This is marked up on my chart below.
@slick, we may well get a green candle, maybe big, that is back up to the 8ema (so 088?), but I personally do not think that the seller have finished.
We have
not had a capitulation candle yet, IMO.
Next, RSI can stay in the 20-10 zone for extended periods. Look back to the fateful sell off Aug-Oct last year. It was an RSI buy at 22Aug, but it did NOT climb out until approx 29Sept. So todays buy signal could bounce along in this low range for 5weeks?? Obviously I hope not! Second chart below with the elipse on it.
Lastly, This is purely on TA, I feel the FA does have a roll to play here as I can not see this break back up until sentiment turns and Insto/sophs kick in big $$$. We need 50M+ volume per day and with Green bars. AIMO.
Without sounding like a broken record, AIMO/DYOR and please invest only when and what YOU want, do not just listen to HC posters.
(20min delay)