Where do you find your overbought/oversold and how do you trade it ?
Is it better to trade the continuation as in "When something is overbought it will remain overbought for some time, due to the forces which drove it into overbought initially don`t fade away fast enough so its still possible to jump on the train" or the reversal as in "the forces must be depleted by the time they drove something in to an overbought, therefore something must start falling soon" ?
Is it better to trade the continuation as in "When something is overbought it will remain overbought for some time, due to the forces which drove it into overbought initially don`t fade away fast enough so its still possible to jump on the train" or the reversal as in "the forces must be depleted by the time they drove something in to an overbought, therefore something must start falling soon" ?
The truth is hidden from you