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Answer:
Personally, I think overbought/oversold indicators work great given they are used properly. For instance, in a ranging market, buying whenever the oscillator indicators oversold conditions while at the bottom of the range works well. The opposite also holds true for overbought conditions. For trending markets, I only use overbought/oversold whenever it matches the overall direction of the pair. For example, when a pair is supported by a rising trend line, I only give importance to the oscillator when it is oversold. There are times when the oscillator would remain in overbought/oversold territory very long.
