Fannie Mae-No Politics (FNMA)

[~ NT ~]

RSI for FNMA.

I am seeing some posts here - so making a general comment.

RSI high means overbought. Vice versa.

How to use it ?

When RSI is very low, people are selling more, wait for support confirmation, then BUY. If bounce is fake, dump and wait again.

When RSI is very high, may be a good ideas to take profits.

However, there are exceptions. Extreme greed and extreme fear zones. The peaks on the runs - MOASS. Which means, RSI may be overbought and the stock might still run.

Example, on the last run, my last trade was 4.03 to 4.94. When I bought at 4.03, RSI was pretty high. So why did I still buy ? Coz that day the close was very strong and people were buying like crazy. Gap and next day AM pop was very likely. The initial plan was to sell the gap. Then on the next day (when she hit 5.20), I was going to sell the gap BUT, I waited. Why ? L2 was on fire. Algos were covering above ask like crazy. Retail was buying which triggered that. That's where the sentiment check helps. I thought I will enjoy the ride and wait for a while. RSI was boiling. But I waited. Finally sold just under 5.00 coz it was a round number (psychological sell off point). I wanted to get filled while people were still buying. COZ once the selling starts, you WON'T get filled. This trade was with a smaller position size than the ones before it - Coz correction was imminent - risk/reward ratio.

Then there was an awesome bounce. That was pure L2 and 1 min chart play. And so on and so forth. Till now. Fannie has been very generous. Hope she keeps giving.

Good luck everyone.