Closed for approx. 50pts gain (I open lots of tiny fractional positions so its hard to track the exact amount) on NQ.
I left a tiny bit on the table. Expecting a reversal on the hour, so scaling in now for a bounce down off the 3800 SPX level.
Because you believed it was ... oversold. It doesn't exist. You and others bought, and yet it went down further. What does that tell you? And please don't say you were wrong about it being oversold at that point. Price went down so it can be anything else than some thought it wasn't "oversold" and sold more.
It went down a tiny bit, but reversed in line with expectations to make it a winning trade. I don't use the RSI to precisely pick a reversal point, but to pick a reversal area in conjunction with other indicators, pivot points and S&R levels. Because I scale in, i don't need to pick the exact reversal point. If it doesn't work well for you then I can see why you wouldn't use it. I work with the assumption that if everyone who was going to sell, has sold already, then that only leaves buyers left to transact around key levels. The only mistake I made was to stop and reverse short way too early.
It was a textbook reversal area under 3800 and a good long trade. I wouldn't use the term "oversold" and "overbought" though. I think thats where u rub people the wrong. Its more of a newb term and everyone wants to feel like they know more than you. If you are using a confluence of factors to make a long trade, it was a smart trade. To each his own in trading.
100+ points rebound, let me see at closing. YM did me good this year. ES not much. NQ I actually lost money.