@JokerTheOne Those are also what people call liquidity traps. Market makers (brokers, whales…etc.) will dip price up or down past a level where a ton of orders are stacked. This triggers breakout limit orders and stoploss orders. Next phase is to quickly move price the other way and trigger stoploss orders on all the limits you just set off. If you notice, almost every pair will go through a phase of ranging 35-60 pips. Most people set their stoploss at what?.. 10, 25, or 50 pips. When you see a bunch of wicks developing in a certain grouping of candles, like the 5 dead-middle of your chart, that’s stop hunting. Place a counter-trend order and pick up a quick 50 pips.
Also, overbought and oversold is a fallacy in trading. Price will go as far as it wants in any direction. If anything, when the stochastic crosses the 50, stay with the trade until in comes back down under/over the 80/20. Just my opinion on how to use the indicator
Gimme that middle 80% all day, every day.