Overbought /oversold Indicators

[Ali 123]

There are many indicators which can help us to determine the overbought and oversold area. The most common indicators to determine the overbought and oversold area is stochastic oscillator, but you can
also use Relative Strength Index, Momentum, Willams percentage, etc. But i found these indicator often give a wrong signal. to identify overbought or oversold price I use indicators RSI with the setting 20.50.80. or
it could be using the indicator StohasticOs. It is pretty easy to identify price with this indicator

[razia86]

friend i think its good way for traiding...there are many indicators that show oversold and over bought levels and you can use rsi, bollinger band..etc..in my view bolinger band is good indicator....

[Abdullah ALfaheed]

This really is great, but there are a lot of programs and platforms that never end a lot of people give many impressions and give their opinion which doesn't expire and thank you Sir

[jestar]

yes we can use the RSI indicator to look overbought or oversold market. This indicator can provide a good trade signal. level indicated RSI indicator we can use to take trading positions. and to further confirm the signal, we can add MACD indicator.

[restrained_12]

To tell you the truth, it doesn't really matter in my opinion. They all do pretty much the same thing...tell you overbought/oversold conditions. The most important thing is that you understand what the indicators are telling you.

They do all act very similar. My weapon of choice is Stochastic. I also look at RSI, CCI, and OsMA.
I prefer to not to look as overbought or oversold but more to spot divergences.
You also have to know whether you're in a trending (one way direction) or sideway (directionless) markets.
You'll get killed using oscillators in a trending environment but make a killing in a sideways one. The hard part is knowing which one in you're in

Be careful though, try not to use them exclusively. Sometime the trend ignores these extremes. Check recent rise of GBPUSD in 4hr chart..rsi was hitting 90 I remember..also EURCAD daily chart is way close to 90 reading..(I am talking about RSI which is regulary overbought at 70). Other times, the market will consolidate too little to clear these overbought and oversold areas. It didn't make a retracement, rather consolidated within tight range and that would be the bad point about using such indicators.

I told you this cause I experienced the pain of counting on such sweet indicators RSI and Sto.

[jams4u]

Overbought /oversold Indicators can any one tell me here what value points i put which can help me to identify the OverBought and oversold Indicators.

[profitstaker]

I am planing to use a overbought/oversold indicator to assist me in decision making in trading. At present i started to use Williams percentage indicator and learning this one. Can you share here which indicator is best for deciding the overbought / oversold condition.

You can use Stochatics for planing overbought/oversold strategy. When the signal line exceeds 80 line, it is in overbought, now we wait for sell opprtunity. When the signal line cross 80 line from the top, we open sell order. We do as the same when the signal line under 20 line.

[zainshehzad]

mery khyal mean you can use as an indicator of your mt4 indicators RSI, CCI with these indicators you can find overbought and oversold areas with ease, you can adjust the time frame. Gd Luck.....

[tushark1]

share a good indicator to downlaod and test. does any one have such?

---------- Post added at 10:56 PM ---------- Previous post was at 10:44 PM ----------

doen there is any indicator that alerts you the exact change in trend direction and oversold and overbought?

[MASUMBD01]

This is very helpful indicator that i here from my partner.