Any one sufficiently versed in technical analysis understands the math used to produce the indicators is mainly based on historical and current price, time and volume data.
Understanding this one can gauge current overbought/oversold levels and determine probabilities of trend continuation or trend reversal.
Probabilities, not certainties.
Based on the chart above current price is oversold and is at a good level for scaling in for a longer term investment approach.
However, the math does not suggest a bottom is in until these 3 indicators reverse. Less risk averse traders/investors should remain on the sidelines until they do.
Understanding this one can gauge current overbought/oversold levels and determine probabilities of trend continuation or trend reversal.
Probabilities, not certainties.
Based on the chart above current price is oversold and is at a good level for scaling in for a longer term investment approach.
However, the math does not suggest a bottom is in until these 3 indicators reverse. Less risk averse traders/investors should remain on the sidelines until they do.