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.


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


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