A buy limit order is a stock market order where investors set a maximum price for buying a security. This method lets investors control their purchase price and avoid paying too much in volatile ...

This helps avoid premature selling or buying solely based on traditional RSI levels. Trading with the RSI isn't as simple as selling (or shorting) what's overbought and buying what's oversold.

As an example of how this would work, if a stock is currently trading at $50 per share, an investor might set a buy limit order at $45. If the stock’s price drops to $45 or lower, the order is ...