Hi. I need something to to guess tops/bottoms; determine overbought/oversold areas I realise there're many indicators available to do the tasks I want. But I just don't know which one I should use. There's just too many. I don't know how to make an informed choice. How about you? What do you use to do the tasks? And why? Thank you!
RSI Overbought/Oversold "Wilder recommended using 70 and 30 as overbought and oversold levels respectively. Generally, if the RSI rises above 30 it is considered bullish for the underlying stock. Conversely, if the RSI falls below 70, it is a bearish signal. Some traders identify the long-term trend and then use extreme readings for entry points. If the long-term trend is bullish, then oversold readings could mark potential entry points." http://www.stockcharts.com/education/IndicatorAnalysis/indic_RSI.html
I think the RSI is the most reliable, but it can also go awry, Just be careful and use common sense when there's a trend day,
Due diligence....If you had bothered to read the last 10 threads in this section you could have got your answers.... I am fine. Read my posts under Technical analysis. Because they work for me....