Best Indicators for Overbought/Oversold?

Hello everyone,

I am brand new to the forex and stumbled across these forums. I was just wondering if anyone could tell me what are the best indicators for determining overbought and oversold periods.

Thanks for your help in advance.

-Liz

I’d recommend that you first learn about Stochastics and RSI.

I like looking at slow stochastics and/or MACD for possible trend reversal points, especially in longer terms. Look for divergences. If you see a divergence in both it might be a sign that a reversal is about to happen.

Also, remember that a majority of the time, markets don’t really trend. Most of the time, markets move rangebound so oscillators are a good tool to use.

If you do use oscillators, I would recommend using more than one.

I’ve been trading a demo account for a few months now and I think using stochastics with the macd on 10 min trading the pound, and that has worked out for me. Not 100%, but it’s pretty relieable.

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I use William’s %R to determine overbought/oversold periods. It works well for me.