SPXUSDT – Local Buyer Interest or a Temporary Relief?I’ve developed a Pine Script that generates buy alerts based on RSI and volume behavior.
If you're interested in trying it out — leave a comment, and I’ll share the code with you directly.
On the **SPXUSDT (1H, Bybit)** chart, we’re observing a sharp sell-off with a breakdown below the key dynamic support – **EMA 200**. However, the current structure shows signs that are relevant for a **cautious DCA entry strategy**.
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🔍 **Technical Context:**
- **EMA 9 < EMA 21 < EMA 200** – a clearly bearish alignment.
- Price has moved aggressively below all key moving averages, but the latest candle shows a **bounce with increasing volume**.
- **RSI Indicators:**
- **RSI (14): 28.92** – firmly in the **oversold** zone.
- **RSI EMA: 37.28** – RSI remains below its average, showing bearish pressure.
- **Cautious DCA on Dips** strategy has triggered **two consecutive buy signals** near the local bottom.
- Initial support forming between **0.4430–0.4460**, which could serve as a DCA zone.
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📈 **Volume Insight:**
The spike in volume hints at **localized demand** — either from short-sellers closing positions or early accumulation attempts by buyers reacting to oversold levels.
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⚠️ **Cautionary Notes:**
- **RSI has not yet crossed its EMA to the upside**, which means a reversal is not confirmed.
- Without a breakout above **EMA 9 and EMA 21**, any bounce should still be considered **corrective**.
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✅ **Strategic View:**
- This zone may be appropriate for **initial DCA entries**, but should be approached with **risk-managed scaling**.
- Key confirmation would be a **bullish RSI crossover above its average**, followed by **EMA 9 crossing EMA 21**.
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💬 Drop your thoughts in the comments – are we seeing early accumulation or just another trap in a downtrend?
