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📊 Learn to Read Market Moves!
Here’s a perfect example of how Bollinger Bands 📈 and RSI 📉 can guide your trades:
🔵 Bollinger Bands (BB 20 SMA):
Notice how the price hit the upper band, signaling potential overbought conditions.
A sharp drop followed as the price moved back inside the bands — a classic mean reversion setup.
📉 RSI (14):
The RSI crossed above 70 briefly and then dropped below 50 during the correction.
It’s now hovering around 52.14, suggesting a possible neutral to bullish recovery if it holds above 50.
🔍 Key Takeaway:
✅ When price touches the upper Bollinger Band with an RSI near overbought, watch for potential pullbacks.
✅ Conversely, when price touches the lower band and RSI is oversold, it could hint at a bounce opportunity.
💡Tip: Always confirm signals with multiple indicators like RSI + Bollinger Bands for higher probability setups. 📊📉
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