What about overbought and oversold? Generally, it can be identified by the overbought and oversold areas of indicators such as rsi, macd, and kdj. For example, RSI's overbought and oversold area (more than 70 is overbought and less than 30 oversold areas) How to identify and trade the range of shocks? Method 1: Find the top and bottom, then buy low and sell high. Usually this position is the limit position, Once the effective breakthrough, a new interval is formed, which is the top-bottom conversion Method 2: On the basis of the previous, you can use the indicators of overbought and oversold to enhance your judgment, Effectively increase the win rate of transactions For example, the green area is oversold, and at the bottom, The trading plan can consider doing more nearby, Stop loss placed below a nearby low Take Profit is set near the top
There is an overbought zone in the current trend. Do you decide to go long or short?