Overbought or Oversold

If you mean the two opposite conditions of oscillators, I don’t believe that. You may think that it’s already oversold and it’s high time to open a long position, but at this moment you may be painfully kicked out from the market by market makers. Traders often fail to calculate or forecast the real extent of an upcoming final drawdown before the marker reverses. Overbought/oversold doesn’t show this. It’s a very approximate thing that may give you some psychological relief. To buy or sell at the best moment you need to be cautious and patient. The latter is even more crucial.
 
Back
Top