
The 3 rules that tell a DCA bot when to buy. A well designed DCA strategy needs more than just a buy signal. It needs clear entry conditions to identify potential opportunities. Here are three technical rules to consider: RSI (14) below 30: Identifies potentially oversold market conditions. Price closing above the 200 period SMA: Keeps the strategy focused on pullbacks within a broader long term uptrend. Price crossing above the 20 period SMA: Provides confirmation that the price is starting to recover rather than continuing its downward move. When combined, these three conditions help identify oversold pullbacks within a broader bullish trend, with early signs of price recovery. The goal is simple: combine momentum, trend direction, and recovery confirmation to make DCA bot entries more selective.
