Overbought/Oversold

There are two types of markets; range-bound and trending. Oscillators are commonly used to gauge overbought and oversold conditions in range-bound markets. With oscillators, a chartist can forecast when a pair is running out of steam on the upside or downside. Our proprietary model incorporates a statistical averaging of standard oscillators to identify key levels for range-plays. Trade Example: If a pair is highly overbought/oversold and the trend is weak, there is an opportunity for an aggressive range or reversal play