If compared with stochastic, RSI I think it better to forecasting overbought and oversold zone, but still need look another confirmation, like as candlestick reversal pattern, if not yet confirmed, possible the trend still continues.
RSI use is not limited to primitive rules like 30 and 70 levels. There are also RSI divergence & convergence with price (indicator of reversal) as well as strategies which are based on interplay of short and long RSIs (similar to MACD technique), btw it's my favourite tool.
Actually, there are various technical indicators which can somehow point on overbout and oversold and of course there are more effective and less effective ones. The two most popular indicators for charting overbought and oversold conditions are the relative strength index (RSI) and stochastic oscillator. The RSI is a momentum indicator which gauges the speed of the price movement. The stochastic oscillator is used to compare current price level of an asset to its range over a set timeframe - again, it's usually fourteen periods. Which one you will chose is of course up to you, I guess these two both good indicators.
Some traders may be trying to modify RSI level overbought and oversold use 20 and 80 as better filter, and add level 50 as the median line to determine the trend, if the line is above 50 is bulls and below 50 is bears.
There are lots of indicators which are directed at the information about whether an asset is overbought or oversold. I believe that the most popular is RSI. There are actually three areas there: the middle one, the zone of oversold (the lower part) and the highest zone is the area of overbought. I strongly recommend to use several indicators at a time because of the fact that every indicator may give you false signals and in order to double check all the information, you need to look at other indicators like moving averages.
I recommend to use RSI or stochastic as they are the most popular and they are simplies indicators. Some people might say that they are not always accurate, but there are no indicators which are 100% accurate, unfortunately. So, I advise you to use them only in combination with some other indicators in order to doublecheck the validity of signals and avoid losing the money.
But should understand when the level indicator has already reached the level overbought and oversold, it only as a warning, and not always will become valid price will become reversal, sometimes the trend still continues, so still need the next confirmation like as analyze reversal candlestick pattern