How a currency pair overbought in one time frame, is not overbought in other time frame
What do you mean? explain more
Longer time frames take longer to catch up as the indicators are calculated on the each time frame individual
A technical indicator must earn its place on your screen. That is, it must tell you the answer to a question that you must know, and which price cannot tell you.
I can understand a strategy might favour buying when conditions are not already overbought, or selling when conditions are not already oversold. But that indicator serves no purpose on any other time-frame.
In fact - I suspect its just me who has this opinion - new traders should not use more than one time-frame.
On indicators like RSI, Bollinger bands, one minute time frame shows EURO/USD as overbought but on 10 minutes time frame it is in middle- neither overbought nor oversold
yes the reasons for the trading say info on daily,4 hour ect ect but entering the trade use maybe stotch overbought/oversold 5 mins time frame
On 4 hours?
Yes to evaluate trades weekly right through to lower time frames ,for executing the trade lower time frame
However, it is the news and current market conditions that govern not the cycle of buying and selling
its your opinion as a trader
Dont fall into into this over thinking trap. Dont try to work out why a trade moved the way it does, it just does and that’s all you need to know.
Some pairs may be overbought though, they continue the uptrend and the same thing with oversold remains in the downtrend and not the current price reversal.
Duration, that’s why every timeframe show a different side to the other. Higher timeframe are more accurate.
Despite the daily and weekly timeframe and does not give reflection signals!
Don’t be a Stochastic Sheep.
An oscillator can remain OB or OS for long periods of time, so just because the indicator says “overbought” doesn’t mean you should blindly sell. Overbought can simply mean the price is in a super-strong trend. Same principle for “oversold”.
Nope your not alone - I agree entirely.
Yes and some pairs reverse when they’re overbought and oversold. You cant generalise. And you cant think you know why either.
Yes, it is true, no generalization, if in your view what makes it continue to rise despite the peak purchase and the same thing with regard to oversold?
it continues to rise because there are more buyers than sellers at that point. If you try to sell, then take your 1-2% loss and re-analyse.
What is next analysis?