Overbought or Oversold

fxoday

Recruit
Messages
719
If you try to observe oscillator indicator RSI and Stochastic, there are different signal overbought and oversold given by indicator, Stochastic is more sensitive than RSI, but the problem is percentage false signal stochastic higher than RSI.
 

momo3HC

Sergeant Major
Messages
537
I feel that all the indicators for overbought/oversold work pretty much the same way. I think that the question is how you use their signals in your trading in order to get profits.
You must pair them with some other indicators. Which one? That`s your personal preference.
 

Vivaan Jua

Private
Messages
20
Which is the best indicator to determine oversold and overbought levels.
Well, Forex trading isn’t any easy way of money making! And there is no way to make consistent money here by using any technical tool! Of course, default trading tools are important; but you can’t rely on only the trading tools! I basically use my Price Action knowledge to understand the supply/demand correlation!
 

fxoday

Recruit
Messages
719
However indicator only helps tool, when RSI already shows the overbought level above 70, but the trend still continues and not yet signaling reversion, when the trend is too strong, the indicator may be given the false signal.
 

ForexTus

Recruit
Messages
149
If you are looking solely for that which is subjective and you would need more to trade successfully it'd be RSI
 

fxoday

Recruit
Messages
719
the relative strength index (RSI) is a popular indicator
Yes, there are some indicator oscillators but RSI is the most popular, compared to the stochastic, far different signal given, stochastic more active than RSI to reach overbought and oversold levels.
 

momo3HC

Sergeant Major
Messages
537
Yes, there are some indicator oscillators but RSI is the most popular, compared to the stochastic, far different signal given, stochastic more active than RSI to reach overbought and oversold levels.
But both can`t be used as a single signal trigger.
 

bigdolly

2nd Lieutenant
Messages
1,233
RSI indicator is the best tool to identify overbought or oversold zones. However it works only on high timeframes and on assets that don't exhibit strong trend properties like Gold which often ignores technical indicators due to pronounced fundamental events.
 
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