overbought or oversold condition?
Hi ,
first I hope you do not mind if I post in your forums since I am fairly new and I should be in the QA forums...
moment...I've been looking at charts and price action for a couple of weeks and construction on a platform I have in mind. . .so much I have tested it backward, and continue week with a play ccount. The purpose is try to sell when it's overbought, and buy when oversold, according to a 9 RSI, 15 mins chart.
Now I have noticed that if and overbought or oversold condition starts, no matter how much in overbought / oversold it can go ( oversold dipped this friday for at least 40 pips on EUR/USD ) at the end it always comes out at the maximum point of this candle it went into. ( btw: it appears it doesn't apply for USD/YPJ).
Apart from me being not able to await hours for the inversion of trend, is it a statement that could have some fundation? Might it be true that it always comes back out?
thx