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SM Stock Market Method

RSI Oversold Is A Trap In Downtrends #shorts

TL;DR

Full video: https://youtu. be/5eUryVKAPtA RSI Oversold Is A Trap In Downtrends.

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Where this fits in the Confluence Method

This lesson lives in the Stack step of the Confluence Method, where you confirm price action and structure, a key level and momentum before a setup qualifies as a trade.

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Full transcript

2 sections

0:00Buying RSI under 30 in a downtrend is how accounts die slowly. Here's the filter that catches real reversals. RSI oversold tells you sellers were aggressive, not that they're done. In a downtrend, oversold prints all the way down. Only by oversold when price is above the rising 50-day moving average.

0:20I broke down the trend filter rule on real charts in the full video link in the description.