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
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.
this is a test
12345678910
I use William’s %R to determine overbought/oversold periods. It works well for me.