overbought/oversold

Hi guys, could you indicate a useful indicator that works on every pair (better on 1H graph) to identify overbought and oversold situations?

Thank you in advance!

RSI > 80 and RSI < 20

Personally I like a slow stochastic set at:
%K = 14
%D = 5
Slowing = 6
High/low
SMA

Above 80 is considered "overbought"
Below 20 is considered "oversold"

Just because and indicator signals "overbought" or "oversold" does not mean you enter a trade at that point...this is where many traders get themselves into trouble or why many say the indicator is "worthless".

All an indicator is designed to do is show you a mathamatical "picture" of price movement based on whatever formula it is using. But in the end is is PRICE that should indicate whether you enter a position. That's why a set up/trigger is so important.

When you get an entry set up mark the extreme of the corresponding candle. Highs for longs, lows for shorts. Then wait for price to CLOSE beyond this extreme to enter.

Using it is pretty simple.
Long set up = bullish cross AFTER the Stochastic line has crossed below the 20 line.
Long Trigger = close above high of corresponding candle identified in set up

Short set up = bearish cross AFTER the Stochastic line has above the 80 line.
Short Trigger = close below the low of corresponding candle indentified in set up


This method works well on short time frames and even better the larger the time frame. Hope this helps.