RSI Silver Indicator Overbought & Oversold Levels

RSI technical indicator values of above 70 are considered to be over bought: silver traders consider points above the 70 level as market tops and good points for taking profits.

RSI technical indicator values of below 30 are considered to be over sold: silver traders consider points below the 30 level as market bottoms and good points for taking profits.

These overbought and oversold silver trading levels should be confirmed by RSI center line crossovers trading signals. If these regions give a market top or bottom, this silver signal should be confirmed with RSI center line crossover silver signal. This is because these overbought and oversold levels are prone to giving whipsaws in the xagusd trading market.

In the xagusd trading example explained and shown below, when the RSI hit 70, it showed that the silver trading was overbought, & this could be considered a trading signal that the silver trend could reverse.

The silver chart then reversed the silver trend after a short while and started to move downward, until it got to the oversold levels. This was considered a silver market bottom after which the silver chart started to move upward again.

Overbought & Oversold Levels - RSI Silver Trading Strategies

Over Extended Overbought and Oversold Levels

When the xagusd trading market is trending strongly upwards or downwards the RSI indicator will stay at these overbought and oversold levels for a long time. When this happens these overbought and oversold regions cannot be used as silver market tops and silver market bottoms because the RSI indicator will stay at these levels for an extended period of time. This is the reason why we say that the overbought and oversold regions are prone to silver trading whipsaws and it is best to confirm these xagusd signals using RSI center-line crossover strategy.

Over Extended Overbought & Oversold Levels - RSI Silver Indicator Strategy