【Session 1】“When RCI reaches ±80, the trap of contrarian betting” – exposing the common myths in FX by a pro
I am Pro Trade Coach Max. This is a new serialization.
As I constantly warn, I ask you all again: do you know that there are really many lies in the common sense on the internet?
Even if you follow the so-called “canonical theories” overflowing on the internet and in books, you will only achieve the same results as 90% of the “losers.” In this series, Max, with 30 years of market experience and over 20 years of RCI experience, will sound the alarm on the “lies of common sense” that plague society.
The theme of Episode 1 is the common notion that you should “enter when RCI reaches ±80.”
To put it bluntly, there is no basis for a reversal there.
Entering against the trend simply based on numeric values where the oscillator reaches extremes (overbought/oversold levels) is just gambling.
What really matters is not the numbers, but the relationship with long-term RCI. If you cannot precisely analyze how the long-term RCI is shaped and where it currently sits, you will miss repeatedly. When the long-term RCI forms a strong trend (Type A shape), going against it has enough destructive power to incur large losses.
Discard the assumption that “it should reverse because it reached 80,” and turn your attention to the true market physics of RCI—its “shape” and its “pull.”
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Pro Trade Coach Max