In the Forex market there is no real timer which makes the scenario very intuitive, believe it or not. It is not like cooking a chicken in the oven where you set the timer of your oven till it is done and relax. Therefore, you have to keep a check every now and then on the bird so that you can take it out right on time and prevent it from being overcooked or simply not cooked at all. In Forex, however the terms overbought or oversold acts as a sort of a timer. But you must remember always that it all depends on the natural reactions.
Consider your positions
These terms help you to be logical and apply it correctly with your positions. If you find that the market is overbought, then you must opt for short positions. This is because things will eventually become right downwards. On the other hand if you find that the market is oversold, then consider an upturn which is highly likely to take place. Ideally, these are the two most significant technical indicators of Juno Markets that can help you understand the condition of a pair and act accordingly. This will eventually help you to work effectively.
Relative Strength Index or Stochastic Oscillator
You can work easily on an asset if you follow the two approaches usually followed in the Forex scenario. One is the Relative Strength Index and the other is the Stochastic Oscillator. These two formulae are very helpful to decide whether the item is overbought or oversold. Commonly known as RSI, Relative Strength Index is actually the momentum indicator that is used to compare the scale of gains and losses and the other for the closing cost of the asset over a specific timeframe. According to the Juno Markets review it will help you to make the right decision.