Now we get to the point of technical analysis, a term named as Overbought and Oversold. Overbought and Oversold is the state price that can no longer continue the trend because it was too expensive or too cheap. These are different with the support and resistance which is a psychological level which basically is just an unofficial agreement among fellow traders, overbought and oversold is a common condition and a real happening in the market.
For example, an uptrend ongoing, then in this situation, the currency becomes more expensive. If you look at a chart of EUR / USD is rising up, it means the value of EUR is increasingly expensive compared to the USD. Traders continue to hunt EUR in the hope prices will continue to rise. This is called follow the trend.
But you should know, there will be a point buyers could not buy the EUR because the price was too expensive. Usually their capital is no longer sufficient to buy EUR in a certain amount. This condition is called overbought.
And when a downtrend ongoing, there will be a point in stopping the price down because the price was too low so that the seller is no longer possible to sell the currency. This is called Oversold.
Overbought and Oversold can be a treasure trove for you. In an overbought and oversold it is expected that the trend will soon stop and reverse direction. The key to his treasure is, buy when oversold and sell when oversold. Again, this is can avoiding the risk of forex
Overbought and Oversold also often occur at points of support and resistance because both of them are the same point, namely the trend counter. But not always so.
Back to overbought and oversold, we've found the key to unlock the treasure chest. But we still do not know the location of the treasure. What we need is the Mr.map. "Mr.map, come on out, we need your help."
A map in this case is the indicator type oscillator such as RSI or Stochastic. These indicators are designed to determine overbought and oversold points. This time I want to use the stochastic oscillator.
Let's see, our Mr.Map gives a lot of places where the treasure is located. Okay, I'll be a rich guy as soon as possible. hohoho,, do not rush .. still many lessons to be learned. keep use the demo account. Happy treasure hunting.
For example, an uptrend ongoing, then in this situation, the currency becomes more expensive. If you look at a chart of EUR / USD is rising up, it means the value of EUR is increasingly expensive compared to the USD. Traders continue to hunt EUR in the hope prices will continue to rise. This is called follow the trend.
But you should know, there will be a point buyers could not buy the EUR because the price was too expensive. Usually their capital is no longer sufficient to buy EUR in a certain amount. This condition is called overbought.
And when a downtrend ongoing, there will be a point in stopping the price down because the price was too low so that the seller is no longer possible to sell the currency. This is called Oversold.
Overbought and Oversold can be a treasure trove for you. In an overbought and oversold it is expected that the trend will soon stop and reverse direction. The key to his treasure is, buy when oversold and sell when oversold. Again, this is can avoiding the risk of forex
Overbought and Oversold also often occur at points of support and resistance because both of them are the same point, namely the trend counter. But not always so.
Back to overbought and oversold, we've found the key to unlock the treasure chest. But we still do not know the location of the treasure. What we need is the Mr.map. "Mr.map, come on out, we need your help."
A map in this case is the indicator type oscillator such as RSI or Stochastic. These indicators are designed to determine overbought and oversold points. This time I want to use the stochastic oscillator.
Let's see, our Mr.Map gives a lot of places where the treasure is located. Okay, I'll be a rich guy as soon as possible. hohoho,, do not rush .. still many lessons to be learned. keep use the demo account. Happy treasure hunting.
1 komentar:
hi,
how to dowelude this indicator
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