Best Indicators for Overbought/Oversold?
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  1. #1
    Join Date
    Mar 2006
    Posts
    4

    Default 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

  2. #2
    I'd recommend that you first learn about Stochastics and RSI.

  3. #3
    Join Date
    Mar 2006
    Posts
    5
    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.

  4. #4
    Join Date
    Mar 2006
    Location
    Sacramento, CA
    Posts
    5
    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.

  5. #5

    Default TEst

    this is a test

  6. #6
    Join Date
    Mar 2007
    Posts
    1
    12345678910

  7. #7
    Join Date
    Feb 2007
    Posts
    27
    I use William's %R to determine overbought/oversold periods. It works well for me.

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