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The RSI and the Stochastic are what I prefer; though I don’t use them solely. There are times when the trend is not influenced by these extremes. I had some major losses when I relied so much on RSI and Stochastic indicators. Let me share one of my experiences: During a rise of GBP/USD in the 4-hour chart, the RSI was shooting 90. Even the EUR/CAD also read 90. I’ve always known that RSI is regularly overbought at 70. But sometimes the market consolidates too little to show clear areas of the overbought and the oversold. Using indicators became extremely unreliable when the market didn't retrace due to the fact that it consolidated within tight range.
