You can see that the RSI has been a good indicator for GOLD when it bounces from oversold conditions. However, relying on just this can be dangerous. As you can see in November 2017, we were oversold for almost 2 months but we continued to capitulate. So what I am looking is a bounce, a small amount of consolidation on the hourly time frames and then another breakout confirming a trend reversal. Tight stop losses are important with these types of trades in case we repeat what happened in November and continue to drop. If we get stopped out, it's no biggie as we will look for the same opportunity again
I am not a financial advisor so please do your own due diligence before entering trades, good luck :)
I am not a financial advisor so please do your own due diligence before entering trades, good luck :)