So I just went long based on a new indicator that I am using: TSI, or true strength indicator. After doing some analysis over some time, I think this is something that that is quite underutilized in crypto but I think can be quite effective.

So this indicator just crossed over from a very low point to a buy signal. The ultimate thing to do is buy low and sell high.

The indicator is basically telling us that btc is very oversold and has just given us a buy signal.

the problem

At the same time on a non log chart btc is just hitting the downtrend that has been respected all year. As such my position is small, and I am ready to sell as soon as we bounce off it, which reduces risk.

next target

First I want btc to break thru the downtrend. If that happens I will go long further and add to my position.

If not I will sell my position. The first target I expect to hit is 7.7k or so for btc. Once we get closer I will refine this.

If we fall off resistance, I expect btc to not hold 6k, at which point I will likely short.

what is your thought?

What do think of the TSI indicator?