I just noticed that many people trade by "buying low and selling high," but the true reversal point is too difficult to predict visually. It requires indicators to signal the right entry point for better accuracy.

Actually, the main problem many traders face is relying directly on Overbought/Oversold signals. They are ineffective when the market has a strong trend. Prices will cause the indicator to show high or low readings for a prolonged period, making trading risky. Using indicators to identify safe entry points is better done by observing divergence between the price and momentum.

Let's start with RSI. When the price makes a new high but RSI doesn't follow, that's a Bearish Divergence indicating that buying strength is weakening. It's like a warning that the upward move isn't stable. Conversely, if the price makes a new low but RSI doesn't follow down, that's Bullish Divergence, suggesting selling pressure is fading. This is a relatively safe point to buy.

And what about MACD? It’s good because it shows both trend and momentum. Look at the Histogram: if it keeps decreasing while the price is still rising, it indicates the upward momentum is weakening. This is a signal to sell because the rally lacks volume support.

Don't forget OBV. It indicates trading volume. If the price is rising but OBV is decreasing, it shows that sellers are gradually exiting rather than accumulating. This is Bearish Divergence, suggesting the rally may not be sustainable. Conversely, if the price drops but OBV rises, it indicates buyers are accumulating, which is a good Bullish Divergence.

The trick is not to rely on just one indicator. Try combining RSI, MACD, and OBV. When all three signal the same divergence, the accuracy increases significantly. I’ve found this technique very effective for identifying true reversal points. Try it next time you trade.