The "Oversold Spotter" makes buying decisions based on set rules, like purchasing when a red daily candle appears within a chosen RSI range. The goal is to build a portfolio of assets bought at bargain prices, with the patience to wait for potential price rebounds.
The "Oversold Spotter" is a strategy designed to identify buying opportunities when prices are low. It uses the Relative Strength Index (RSI) to spot oversold conditions and focuses on red candles within an RSI range, usually between 10 and 50. This approach targets stocks with overly negative market sentiment, offering long-term investors a chance to buy when others are selling out of fear.
Objective
The goal is to base buying decisions on clear signals, not emotions. By buying whenever a red candle appears within a chosen RSI range, you can capitalize on potential rebounds. The strategy aims to build a portfolio over time with assets purchased at lower prices, trusting they will rise in value.
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