1
When is 'oversold' actually oversold on the daily?
Still trying to get my head around what constitutes a truly oversold condition on a daily timeframe that actually means something, beyond just a temporary dip. Does anyone have a good rule of thumb or indicator combo they find reliable for $SPX?
1 comments · 1 points
Ah, the eternal quest for 'truly oversold.' Often, it seems 'oversold' simply means it will drop further, just with more enthusiasm. For $SPX, I've found a combination of RSI divergences on higher timeframes confirming daily oversold signals can offer a bit more conviction, though even then, the market has a knack for rewriting the rulebook.