over bougt/over sold levels - page 2

[Attila Alp Oğuz]

Sergey Golubev:

First chart on this thread "with pips"?
It is the illustration about 'possible good situation' in case we are trading schaff trend cycle indicator (in separate window) only on the way as overbought/oversold: buy if the value of the indicator is below 20, and sell if the value of the indicator is above 80 (for example) ... or crossing 20 or 80 to below or above ... depends on the coding for the EA for example.

I see, thank you.

[anurag bhargava]

it really looks a powerful oscillator, any results to show its worth

[anurag bhargava]

Sergey Golubev:

This is the other setup (the settings of the indicator):

why this setup being used, any thing different or for smoothen curves.

[Sergey Golubev]

anurag bhargava:

why this setup being used, any thing different or for smoothen curves.

This post here?
Yes, smoothen curves with less false signals ("Better Less But Better", - V. I. Lenin)

Because finding good settings for the indicator is same as finding good settings for EA.
If we want to create trading system so we should estimate/evaluate/select the settings for the indicators especially related to price action such as overbought/oversould.

[anurag bhargava]

talking about setup, is there any particular time frame in which it suits better.

or work with any time frame, I am currently using it in TF above 1 Hour.

[Angelito Cartagena]

In my opinion there are no such thing as accurate signal regarding to a particular aspect in trading, in this case overbought and oversold, because any indicators has its ups and downs depending on market conditions, signal created by oscillators are only effective in ranging market but deem worthless on a trending market. 

[anurag bhargava]

Angelito Cartagena:

In my opinion there are no such thing as accurate signal regarding to a particular aspect in trading, in this case overbought and oversold, because any indicators has its ups and downs depending on market conditions, signal created by oscillators are only effective in ranging market but deem worthless on a trending market. 

yup, it certainly not helping, trying out different oscillator, with different parameters

[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

Market Condition Evaluation based on standard indicators in Metatrader 5

Sergey Golubev, 2020.11.07 06:24

On Methods to Detect Overbought/Oversold Zones. Part I

Table of Contents

• Introduction
• General
• What Are Overbought/Oversold Zones in terms of the Process Dynamics
• On Accuracy in Detecting the Overbought/Oversold Zones
• Consequences of Entering the Market When in the Overbought/Oversold Zone
• Evaluating Losses Related to the Risk of Opening a Position in Overbought/Oversold Zones
• Consequences of Exiting the Market When in the Overbought/Oversold Zone
• Pros and Contras of Using Conventional Indicators to Detect Overbought/Oversold Zones
• Setting Up a Group of Indicators Using the Values of Fibonacci Series
• That "Restless" Stochastic: Analyzing the Indicator Formula
• Testing a Group of Indicators Detecting the Overbought/Oversold Zones on Different Trend Types
• What's Wrong with RSI? Analyzing the Indicator Formula
• Results of Evaluating the Accuracy of Detecting the Overbought/Oversold Zones Depending on Settings and Trend Type
• Conclusions on the Efficiency of Conventional Indicators Detecting the Overbought/Oversold Zones
• New Approaches to Enhance the Efficiency of Detecting the Overbought/Oversold Zones
• General Requirements for the Algorithm to Detect the Overbought/Oversold Zones When Using Fractal and Candlestick Analysis
• Method Related to Identifying the Signs of the Trend "Slowdown"
• Algorithm of Anchoring to the Trend Onset
• Method Related to Distancing from the Trend Onset
• Conclusions