Overbought or Oversold

[fxoday]

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.

Gold is usually associated with the USD, when the dollar is stronger, the gold weakens, but the two are considered a safe haven, gold has proven to exist from ancient times, and the USD is the currency reverse in the world.

 

[sebking1986]

I personally like to use HTF to identify high and lows of the recent range and then it's a case of premium and discount pricing based on price location within that range.