Oscillating Type (Overbought and Oversold Exit Zones)
◦ RSI (Relative Strength Index): After RSI enters the overbought zone (usually >70) and then falls back, it indicates a bullish exit; after entering the oversold zone (usually <30) and then rising, it indicates a bearish exit.
◦ KDJ (Stochastic Indicator): When the K value crosses down from the overbought zone (>80) through the D value, it signals a bullish take profit; when the K value crosses up from the oversold zone (<20) through the D value, it signals a bearish take profit.
3. Capital Sentiment (Auxiliary Confirmation of Exit Timing)
◦ Trading Volume: Price hits a new high but trading volume shrinks, indicating insufficient buying pressure, bullish take profit; price hits a new low but trading volume shrinks, indicating exhausted selling pressure, bearish take profit.
◦ Open Interest (OI): A significant decrease in open interest during a trending market suggests weakening trend momentum and may be an opportune time to exit.
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Oscillating Type (Overbought and Oversold Exit Zones)
◦ RSI (Relative Strength Index): After RSI enters the overbought zone (usually >70) and then falls back, it indicates a bullish exit; after entering the oversold zone (usually <30) and then rising, it indicates a bearish exit.
◦ KDJ (Stochastic Indicator): When the K value crosses down from the overbought zone (>80) through the D value, it signals a bullish take profit; when the K value crosses up from the oversold zone (<20) through the D value, it signals a bearish take profit.
3. Capital Sentiment (Auxiliary Confirmation of Exit Timing)
◦ Trading Volume: Price hits a new high but trading volume shrinks, indicating insufficient buying pressure, bullish take profit; price hits a new low but trading volume shrinks, indicating exhausted selling pressure, bearish take profit.
◦ Open Interest (OI): A significant decrease in open interest during a trending market suggests weakening trend momentum and may be an opportune time to exit.