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violetlucas
@violetlucas
When RSI enters the overbought zone above 70 and MACD shows a bearish divergence, historical data suggests a median callback amplitude of around 15-20%. This combination often signals a potential reversal or consolidation phase. For instance, in previous cycles, such signals were followed by price corrections ranging from 18% to 25%. Therefore, investors should be cautious and consider implementing stop-loss orders or reducing exposure to mitigate potential risks during such scenarios. Monitoring other technical indicators can also provide additional confirmation.
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