We never know and the best we can do is take a guess.
The key to the enigma is to keep trying, when our strategy, whatever it may be, seems to indicate overbought or oversold.
Managing risk to control our money and be able to accept losses, because that big win can come at any time.
Cheers
Uncertainty of the market must be embraced and accepted.
no you cant...you need need to calculate the currencies intrinsic vale and then see if its over sold or over bought given the current vale. for example Euro intrinsic vale to dollar is around 1.2 if you can several factors into account...but this isn't perfect either.
Well, basically the term overbought means it’s priced “too high”, higher than it “should” be. People are buying it at prices above what you would expect for the currency/stock/commodity, etc. But if people are buying it at high prices, that means others are selling it at high prices (the ones selling it to the people who are buying). So why don’t we call it oversold? Again, it comes back to having an idea of what it “should” cost. If it’s above that price, people will call it overbought, below that, and it’s oversold. So in order to determine if...
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Second approach is try to predict some important in terms of market impact events. Can be considered as fundamental analysis though. Like economic report outcomes, Fed decisions etc. If you are consistently good at those predictions you can expect to profit from " surprise" in the data.
We never know and the best we can do is take a guess. The key to the enigma is to keep trying, when our strategy, whatever it may be, seems to indicate overbought or oversold. Managing risk to control our money and be able to accept losses, because that big win can come at any time. Cheers
Ignored
I noticed from traders sentiment that people usually agree on a position when its overbought or oversold... until the market proves them wrong.
{quote} Second approach is try to predict some important in terms of market impact events. Can be considered as fundamental analysis though. Like economic report outcomes, Fed decisions etc. If you are consistently good at those predictions you can expect to profit from " surprise" in the data.
Ignored
Sometimes the impact isnt what you expect it to be
