I'm long because the charts have told me to stay long. That is my profit target. I won't catch the exact top, but I should be in the area( 2o to 30 points). Not always of course.
Ok. Then yes, a lot of folks should take it off their chart, if they just sell when it gets to 70. I was looking back at ES charts a while back and I think the market has sometimes gone for another 150 handles past the OB line.
Certainly it lags. However RSI and Histogram divergence lag less, sometimes almost nonexistent lag. You then follow the ensuing trend.
In a bull market using rsi you will not know where to exit because rsi stays high, pull up a chart in a down trending market and see how well buying under 20-30 works.
You don't reverse until you see divergence, many times with a failure swing at the OB/OS line. I always defer to the recent reaction lows/highs first and that keeps me in the trade. Divergence is the second thing I look at, not the first.
weekly chart--yes. daily chart--pullback for now and not reversal. If we get follow through in the next few sessions, I'll reevaluate.