Oversell and Overbought strategy

[stevenoi]

Hi,

Check out my results on the link below :

http://www.myfxbook.com/members/stevenoi/small-fund/405498

The trades had been made during overbought and oversell period based
on my own graphs.

Leave me a message if you think i am worth a discussion.

 

[Enivid]

It's worth describing in better detail than just "oversell and overbought strategy".

 

[Rob Taylor]

There is no such thing as oversold, or overbought in Forex. In simple terms all trades are matched. If you are short someone else is long, if you are long someone else is short. For every winner there is a loser. You make a 1000 bucks someone else loses a 1000 bucks.

If you follow stochastics which i don't, that will give you overbought and oversold indicators. Sometimes it works, sometimes it don't work. If you are basing a strategy on overbought and oversold indicators you will lose money in the long run. Price action trading is the only thing that works consistently in my opinion.

 

[ituglobal]

Oversold and overbought strategies do well in choppy or sideways markets, but they fail when the markets are in a strong trending mode. When the markets are in a strong trending mode, resistance and support levels are cut through as if a hot knife cuts through butter.