Overbought oversold signals are pretty important when entering a trade, i mostly use it to decide on the position size.
but, it can be seriously misleading in strong trending markets and cause massive losses when used alone.
you can see the massive rally btw 1997-2000 after RSI signaled overbought and kept making new lows...
but, it can be seriously misleading in strong trending markets and cause massive losses when used alone.
you can see the massive rally btw 1997-2000 after RSI signaled overbought and kept making new lows...
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