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accurate overbought/sold indicator

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santos2301
224
santos2301  
does anyone know of any indicator that can correctly predict overbought/sold levels better than the stochastic, we all know the stochastic is accurate but sometimes it will hit overbought and still continue to go  up/down..if you know please reply, thanks
ltmfx MAKINDE L T
69
ltmfx MAKINDE L T  
santos2301:
does anyone know of any indicator that can correctly predict overbought/sold levels better than the stochastic, we all know the stochastic is accurate but sometimes it will hit overbought and still continue to go  up/down..if you know please reply, thanks

The zig zag will help pinpoint yr entry. Absolute reliance on a single indicator is not so safe.addition of one or two other indicators will do the trick.

u cud try the MACD, STOCHASTIC and zigzag and watch the difference 

Namthanduan Kahmei
178
Namthanduan Kahmei  
You can try Bollinger band.there are many ways to used it

Dua Yong Rew
5475
Dua Yong Rew  
oscillators does not work in trending situation
Widy Prasetyo
473
Widy Prasetyo  
santos2301:
does anyone know of any indicator that can correctly predict overbought/sold levels better than the stochastic, we all know the stochastic is accurate but sometimes it will hit overbought and still continue to go  up/down..if you know please reply, thanks

There are no indicator can correctly predict overbought and oversold. It all depends on how you use it. Stochastic & BollingerBand is very good indicator.

for example, If you look at TF 5, stochastic & Bollinger band have reach upperBB and Stoch pass over level 80, it doesn't mean market loosing it bullish power. Now try look at bigger TF (Monthly), price could be only move around midBB area and stochastic still far from overbought, and possibly in different trend either.

So, I think overbought & oversold is only a perception (not real condition).... and if you want to know overbought or oversold condition, then compare to other TimeFrame.

Bollinger Bands ®
Bollinger Bands ®
  • votes: 26
  • 2010.01.26
  • MetaQuotes Software Corp.
  • www.mql5.com
The Bollinger Bands ® Indicator (BB) is similar to Envelopes. The only difference is that the bands of Envelopes are plotted a fixed distance (%) away from the moving average, while the Bollinger Bands are plotted a certain number of standard deviations away from it.
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